Despite the recent approval of an 18% increase in electricity tariffs, Sri Lankan consumers can breathe a sigh of relief as leading industry associations have announced that food prices will not be subject to hikes. The Bakery Owners Association and the Canteen Owners Association, in a collective stance, reassured the public that they intend to maintain the current prices of food items, even in the face of rising operational costs.

This affirmation comes as the nation grapples with heightened concerns about the overall cost of living, given the recent electricity tariff hike. With electricity being a crucial element in food production, some had speculated that this increase might drive up the prices of food items, affecting consumers' budgets.

However, the Bakery Owners Association and the Canteen Owners Association have underlined their commitment to offering customers affordability and convenience. They have affirmed that despite the higher operational expenses incurred due to the electricity tariff hike, they will absorb these costs to prevent any food price increases.

Nonetheless, the food industry's ability to entirely shield consumers from financial impacts stemming from the tariff hike may face challenges due to another external factor—the ongoing conflict in the Middle East. The situation in the region has already led to global fuel price surges, and Sri Lanka could be impacted by this phenomenon.

The world has observed notable fluctuations in fuel prices, primarily driven by growing instability in the Middle East, which is a significant global oil-producing region. These price hikes have reverberating effects, potentially causing Sri Lanka's fuel costs to increase. If fuel prices rise locally, it could eventually have downstream impacts on transportation and other sectors, which may indirectly affect food prices.