State Minister of Co-operative Services, Marketing Development and Consumer Protection Lasantha Alagiyawanna says milk powder prices in the world market have increased significantly.
The State Minister speaking at a media briefing said companies have repeatedly requested to be granted approval to increase prices.
He said companies are requesting the Rs.945 packet to be increased by Rs.275 and the 400g Rs.380 packet by Rs.110.
The State Minister added as a responsible government such a hike cannot be allowed and attributed this decision to the shortage of milk powder in the market.
State Minister Alagiyawanna claimed the Minister of Finance held a round of discussions, adding that Custom duty has been slashed.
He said some companies have subsequently claimed the concession and agreed to issue milk powder to the market at previous rates.