Heavy price tag for scarce home gadgets, stationery, spare parts
Sri Lankans will face continuing increases in prices and shortages of stationery, vehicle spare parts and home appliances as a result of the US dollar crisis, importers warn.
Forex reserves in the indebted country have depleted to unprecedented levels. What is left is enough for 1.3 months of exports.
An international sovereign bond repayment is due on January 18.
Monthly consumer inflation is continuing to rise.
More than 1,000 containers of essential goods are stuck in port. State banks are unable to release US dollars to importers for payment.
“Printing paper needs to be imported. For other stationery manufactured here needs raw material from China. The paper and stationery stocks are running out and most importers are having a tough time," said Nalin Welaratne, managing director of Officeworks.
He said shipping costs have soared.
“Previously, one container was about US$ 800 to US$ 1,200, and now it has gone up to about US$ 10,000. Added to that is the US dollar crisis
here as our containers are held and banks are not eagerly facilitating letters of credit. We got bank loans, staff salaries, and have to provide customers with specific stationery requirements."
K. Krishnakumar, owner of Micro Stationery in Pettah, said he could not offer stable price quotations to state institutions because of rapidly changing prices.
"A large box containing 10 small stapler pin boxes was sold at Rs. 160 before the second lockdown. It went through five price changes and is now sold at Rs. 325. A
heavy duty stapler pin that was Rs. 110 has increased to Rs. 135. A pack containing 100 cardboard files was Rs. 363 a few months ago and is now sold to wholesalers at Rs. 680 and Rs. 750 for retailers. A pack containing 100 laminating pouches was Rs. 1,350 last month and now has gone up to Rs. 2,000,” he said.
According t o M r. Krishnakumar, price control needs to be introduced and monitored or else the people will have to bear the burdens.
Photocopying has become costlier.
"An A4 laminate that was Rs. 60 previously was increased to Rs. 120. Photocopy, printing prices have gone up. Prices of all stationery items have increased," said a communications centre owner in Colombo.
School stationery from the United Kingdom and Australia will cost more.
"The prices are already high, we cannot keep on increasing, causing inconvenience to parents," she lamented.
Motor vehicle repairers and assemblers are also struggling with a shortage of spare parts and high prices.
Large scale and small scale importers of home appliances are unable to release their stocks.
Amal Piyasena, Director of Sena Group said prices of motor spare parts had increased by five times.
“The freight charge increase from US$ 1000 a container to about US$ 8000 has severely affected us. Added to that is the high duty percentage. Due to shipment delays, there is a severe shortage of spare parts, whatever the little stock is available are sold at exorbitant rates,” he said.
A leading household appliance importer said they were facing a crisis over the freight charge hike and the rupee depreciation.
"The situation is horrible. We are trying our best to keep the prices at a reasonable rate for customers," said a businesswoman who brings down IKEA household goods.