Presidential Secretariat of Sri Lanka

29,900 metric tons of hoarded sugar in warehouses to consumers through state and private traders….

The Commissioner General of Essential Services, Major General N.D.S.P. Niwunhella said that 29,900 metric tons of hoarded sugar found in warehouses was confiscated by the government following the investigations and operations carried out today (01).

The consignment of sugar is planned to be sold to the public through state and private traders’ outlets at a controlled price.‍

The import duty of Rs. 50 per kilo of sugar was reduced to 25 cents per kilo from October 14, 2020 to provide relief to the consumers. The volume of sugar stored in the country at that time was 88,878 metric tons.

According to the Consumer Affairs Authority, 584,000 metric tons of sugar was imported between October 14, 2020 and June 30, 2021. The monthly demand for sugar in the country is around 35,000 metric tons.

However, data from the Consumer Affairs Authority reveals that sugar imports have exceeded the annual sugar requirement. An attempt has been made in the recent past to create an artificial shortage of sugar in the country and to sell sugar at a very high price, causing great inconvenience to the consumer.

As per the powers vested in terms of the section 2 of the Public Security Ordinance, President Gotabaya Rajapaksa declared emergency regulations formulated as per the section 5 on essential food supply, with effect from the midnight of 30th August, 2021, by enforcing directives under the section ii of the Ordinance.

Accordingly, the President took measures to appoint a Commissioner General of Essential Services and gave him the authority to coordinate the supply of paddy, rice, sugar and other consumer goods that are essential to maintain the livelihood of the people.

The Commissioner General of Essential Services said steps were taken to confiscate the hoarded sugar stocks by conducting raids in order to safeguard the interests of consumers and then release these stocks to the market under a fixed price.

(The details of the seized sugar stocks on 01-09-2021 are as follows)

Company Address Amount in MT
Pyramid Wilmar Company Muthurajawela 6,200
Global Trading Company 809/5, Negombo Road, Mabola, Wattala 4,800
Global Trading Company 242, Uswetakeiyawa, Wattala 4,100
Wilson Trading  Company  (Warehouses 04) 14,000
R.G. Stores Hunupitiya Road, Kiribathgoda 800