Several rice importers in Sri Lanka have been compelled to cancel their orders due to a limited shipping window and stringent price controls, compounded by bad weather in India that caused delays in vessel arrivals. According to trade sources, the Sri Lankan government had temporarily lifted food controls through a licensing system until December 20, allowing private companies to import rice. However, the timeframe was too narrow to meet the demands.
One industry official shared that bad weather in Tamil Nadu had delayed shipments, and the importers were only granted until December 20 to complete the orders. “We cannot perform miracles. There is a risk of re-exports if there are delays. Many importers have had to cancel their orders,” they stated.
Moreover, the importers face additional challenges, including a tax of 65 rupees per kilogram (approximately 220 US dollars per ton, which is nearly 50% of the export price of 450 dollars per ton), which continues to be levied on the people.