No decision has been taken at the Cabinet meeting yesterday (27) regarding changes in the prices of milk powder, household gas, wheat flour or cement.

The Consumer Affairs Authority (CAA) has reportedly approved to increase the price of a kilo of milk powder by 200 rupees, the price of a 12.5 kg domestic gas cylinder by 550 rupees, the price of a kilo of wheat flour by 10 rupees and a bag of cement by 50 rupees.

A proposal prepared by the Consumer Affairs Authority in this regard was discussed at the Cost of Living Committee meeting chaired by Prime Minister Mahinda Rajapaksa last Friday (24) and its report was to be presented to the Cabinet today.

However, the Cabinet did not make a final decision on the matter yesterday in the wake of the massive public outrage over the soaring cost of living. Many political analysts pointed out that a decision to increase the prices of essential items would be "poltically disastrous" for the government. However, the government does not have many other choices as the country is grappling with a looming foreign exchange crisis.

Meanwhile, the Cabinet has decided to provide funds from the Central Bank for the release of imported essential food items stranded at the Port of Colombo.

The Cabinet also decided to remove the price control imposed on rice, wholesale and retail trade.

Accordingly, the gazette notification containing the maximum wholesale and retail prices for rice will be revoked.

The Cabinet also decided to import 100,000 metric metric tons of rice to prevent an artificial shortage of rice in the country.