The All Island Canteen Owners Association charge that the increase in Value Added Tax, has negatively impacted the restaurant industry.
President Asela Sampath speaking to NewsRadio said the prices of all goods including food and raw materials will increase in line with the revision of the VAT.
Sampath said they are unable to reach a decision as to the percentage by which prices of goods should increase as all prices have risen significantly.
He charged that the restaurant business has been crippled, while a daily income cannot be generated and consumers have dropped by 60-70 percent.
He claimed that the daily supply of food has reduced significantly, and rent has become unaffordable.
He charged that the VAT increase will affect all items from a grain of salt adding that a kilogram of sugar is bordering Rs.290 while a kilogram of dhal is Rs.600.