Sri Lanka allows sharp rise in food prices to ease shortages

Cabinet decides to deregulate prices for milk powder, wheat flour, sugar and LPG hoping to increase supplies.

The Sri Lankan government has ended price controls on essential foods in a bid to end black market trading as food shortages worsen amid a foreign currency crisis.

The cabinet on Friday decided to deregulate prices for milk powder, wheat flour, sugar and liquified petroleum gas hoping it would increase supplies.

“Prices could go up by as much as 37 percent across the board, but it is hoped dealers will not make unconscionable profits,” a trade ministry official told AFP news agency.