The prices of liquid milk and yoghurt made from locally sourced fresh milk are expected to decrease following the Sri Lankan government’s recent decision to exempt these products from Value Added Tax (VAT).
This tax relief follows the enactment of the Value Added Tax (Amendment) Act No. 04 of 2025, which received certification on 11 April.
Producers of these dairy products are expected to reflect the VAT exemption in their retail pricing, offering relief to consumers.
In line with Section 14 of the Consumer Affairs Authority (CAA) Act No. 9 of 2003, the CAA also retains the authority to impose maximum retail prices in such circumstances to ensure fair pricing.
