May 31, 2006

Sri Lanka to raise import tariffs for wheat to prop up rice prices

Sri Lanka plans to raise import tariffs on wheat to prop up prices, treasury secretary P B Jayasundara said Tuesday (May 31).

The government recently imposed a 15 percent import duty on wheat flour and six-percent duty on imports of wheat grain.

Wheat prices have to be raised to keep rice prices at current levels, Jayasundara said. 

The government is expecting a successful Yala paddy harvest this year and more stocks of rice to flood the local market.

We would revise duties based on the availability of rice in the market, if we observe that rice prices are going down further, and then we would increase taxes at the appropriate time, he added.