Home Sri Lanka Price ceiling for bottled drinking water to be enforced in May amid industry objections
Sri Lanka

Price ceiling for bottled drinking water to be enforced in May amid industry objections

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Sri Lankan consumers can expect to see newly regulated prices for bottled drinking water take effect in the coming weeks, as the implementation of government-imposed price controls is scheduled to begin by May.

This follows weeks of non-compliance, despite the Consumer Affairs Authority (CAA) officially enforcing the revised pricing structure from April 1.

A gazette issued by the CAA in late March introduced maximum retail prices for bottled drinking water across several size categories.

However, industry representatives have pushed back, arguing that the sudden enforcement of the new rates without a transitional period has left manufacturers unable to adapt in time.

In a joint statement, bottled water companies called for at least a one-month grace period to allow for the sale of existing inventory produced prior to the price change.

The companies claim that without such a window, they face significant financial and logistical challenges, particularly in light of a prior understanding reached with the CAA.

According to the manufacturers, an agreement had been made to set the retail price of a 1-litre bottle at Rs. 90 in supermarkets and Rs. 80 in general trade.

The new measures have set the price ceiling at Rs. 100, but companies say the unanticipated revision disrupts their established cost structures and distribution plans.

Despite the gazette being in force, recent investigations indicate widespread non-compliance. A survey by “Aruna” newspaper found that retail prices for bottled water remain significantly above the regulated maximums.

For instance, 500–999 ml bottles are still being sold at Rs. 100, while the gazetted price is Rs. 70.

1–1.499 litre bottles are being sold at Rs. 140, while the gazetted price is Rs. 100.

Industry sources have indicated that the maximum retail price will be fully reflected in the market only by May, once pre-existing stock has been cleared.

Meanwhile, consumer advocacy groups have criticised the lack of enforcement, calling on the CAA to take immediate action to safeguard consumers from continued overpricing.

The CAA has not yet issued an official response to the concerns raised by the bottled water industry.

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