The shortage of essential products can be mitigated by creating a competitive business environment without price controls for imported and local products, according to an economic expert.
Chief Operations Officer of Advocata Institute Dhananath Fernando said by doing so, the consumer will be provided with an opportunity to select whatever goods that are suitable for them.
Participating in a discussion at the Government Information Department, he cited imported milk powder as an example and pointed out that freight charges have been increased by five or six-folds, adding that it was a world issue and not something exclusive for Sri Lanka.
The cost of imported milk powder is based on the Dollar conversion and hence it results in an increase of Rs. 350 or more, he said.
Dhananath Fernando pointed out that if the price of imported milk powder is increased in this manner, the public will eventually settle down for products that are cost-effective for them.
This will allow local milk producers to increase their production, as locally produced milk is less expensive than imported milk powder.
Therefore, local milk producers will be benefited from a price hike, he added. (NewsWire)