People’s staple sold at exorbitant prices, 500 errant traders in hot soup

Rice mill owners accused of artificially restricting supply and inflating wholesale prices 

By Yohan Perera   

The Consumer Affairs Authority (CAA) has filed legal action against 500 shop owners for selling rice at exorbitant prices during the first quarter of 2026.   

CAA Director General Samantha Karunarathne told Daily Mirror that legal action has been filed against shop owners across the nation from January 1 to March 31 this year.   

“We had carried out raids during the first three months of this year and managed to file legal action against shop owners who sell rice at high prices. The filing of action follows up with charging a fine,” she said.   

“We file legal action and charge fines from shop owners, but still, they commit the same offence over and over again. The issue is that the current Consumer Protection Act No 9 of 2003. The Act is not strong enough,” she said. Ms Karunarathne said the law should be amended to impose more severe punishment for the wrongdoers or even suspend the businesses,” she said.   

Asked about the reports that some shop owners set their prices with the objective of recovering the cost they had to bear as fines, she said it is a possibility.   

She said the CAA carried out raids during the Sinhala New Year festive period, but the results of these could be known in due course. “We will find out the correct data on the raids carried out during the New Year period at the end of this month,” Ms Karunarathne said.  

It was reported that some rice varieties, such as Keeri Samba, are subjected to a coordinated price-fixing scheme allegedly spanning Sri Lanka’s rice trade. Rice mill owners have been accused of artificially restricting supply and inflating wholesale prices. Wholesale and retail shop owners are accused of price gouging, with fines pre-calculated into margins.