Animal Production Association urges Government to reconsider tax on eggs

Sri Lanka Animal Production Association President Ajith Gunasekara called on the Government to reconsider the imposition of 20.5% taxes on eggs, a perishable item, to address the escalating food prices in the country.  Gunasekara highlighted that the 18% Value Added Tax (VAT) and 2.5% Social Security Levy have led to a significant increase in egg prices. 



“Currently, supermarket eggs are priced between Rs. 64-68, while loose eggs are sold at Rs. 55 each. A 10-pack egg carton now ranges from Rs. 643-667, depending on size,” he told the Daily FT.

His plea comes at a time when President Ranil Wickremesinghe has instructed agricultural authorities to develop a program aimed at providing chicken and eggs at more affordable prices to the public.

Gunasekara also advised taking necessary steps to import parent stocks, enabling local breeders to produce more chicks through breeder farms.

Commenting on the global bird flu outbreaks, he said that consumers should not have undue fear, noting that there are sufficient stocks within the country. “We are self-sufficient now,” he added.

However, he pointed out that it was better that authorities allow import of parent chicks as orders cannot be made immediately from alternative markets which could hinder production. The recent economic turmoil, including a forex shortage and a ban on chemical fertilisers, has artificially inflated chicken prices, prompting State intervention to control broiler chicken prices.

Sri Lanka produces around 18,000 tons of chicken meat and over 21 million eggs per month, primarily consumed domestically as an affordable protein source. The poultry industry engages around 300,000 people directly and indirectly, supporting over 100 families across the country.