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Prices unlikely to come down
By Chamintha Thilakarathna
Despite promises by the Finance Minister that prices of essential goods would be reduced, price cuts on some essentials are not likely as dealers complain they are not in a position to do so.

"We will not be able to introduce a price cut in keeping with the suggested reduction of 6.5% on the price of wheat flour," President of the Sri Lanka Bakers Association Parakrama Dasanayaka said.

He said that in February the price of bread and buns was brought down by about 6% and they are not in a position to reduce prices further.

"Even while fuel and flour prices shot up the price of bread was kept constant as a relief to the public," he said.

Vegetable prices are also likely to remain stagnant despite reduction in fuel (petrol and diesel) prices from tomorrow as transporters are not willing to reduce their charges.

"We have no plans to reduce our rates. Even when fuel prices were increased we did not increase prices, so we don't see why we need to reduce prices now. We will continue with our fixed rates," Managing Director at Jayagiri Transporters K.D.K. Jayatilleke said.

Other transporters agreed that changes in fuel prices would not affect their rates. Therefore, prices of upcountry vegetables are likely to remain the same.

School van owners and three-wheeler owners said it won't be possible to reduce their prices immediately.

Secretary of the All Island School Children's Transportation Association, R. Perera said that with the rise in fuel prices recently most school van operators did increase their charges.

However, he said that he cannot give a guarantee that every school van operator will bring down their charges although the association will make a request for this to be done.

Meanwhile, pharmaceutical dealers and CEB officials said that they are awaiting the green light for the implementation of the proposed reduction. While CEB officials said that decisions are still being finalized, reduction will come with the introduction of VAT.

Pharmaceutical dealers said they have yet to learn if pharmaceuticals will be exempted from VAT or not, depending on which their prices could increase or be reduced.

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