More checks needed to curb unfair pricing of food

There were two incidents highlighted this week involving attempts to sell overpriced food to foreign tourists. In one case a man was arrested for selling a cup of tea and a ‘vadai’ for Rs. 800 in Moragalla, Kalutara while in the other incident, a street vendor at Hulftsdorp was arrested for harassing and attempting to sell a ‘kottu roti’ for Rs. 1,900 to a foreign national.

In both cases the men were arrested after the incidents were highlighted on social media and produced in court by the Police and subsequently released on bail.

This is not the first time such incidents have taken place. It’s common, not only in the sale of food but there are many attempts to exploit foreigners by unscrupulous traders as well as three-wheeler drivers, etc. For now, the action by the Police and the prominence given to these incidents in the media is likely to deter others who may be waiting to make a fast buck at the cost of gullible tourists but it is unlikely that there won’t be a recurrence unless the authorities have a better plan to ensure that foreign tourists are not cheated while vacationing here.

Similarly, there must also be safeguards for locals who have had many unpleasant experiences of being sold overpriced food while eating out. A few months ago, a man was charged Rs. 8,000 for a glass of orange juice at a five-star hotel and this too caused a major outcry on social media. The reason the concerned hotel explained was the oranges used were imported and of an expensive variety.

Cost of food in Sri Lanka increased 3.80% in March of 2024 over the same month in the previous year and food inflation was 10.83% from 2009 until 2024, according to the Department of Census and Statistics. Food prices have risen globally as well with adverse weather conditions harming crops as well as a drop in grain exports due to the war in Ukraine. Hence when people eat out, one has to pay not only for the food but also added taxes such as VAT and service charges. 

Hence consumers know they have to pay more than they did when they ate out a few years ago but the problem remains with the unrealistically high prices that are charged in many places that cannot be justified even if one factors in the price of ingredients, electricity, gas, etc. 

In 2018, a restaurant in Venice, Italy that charged a group of Japanese tourists 1,143 euros for four steaks, a plate of mixed grilled fish, two glasses of wine and mineral water were fined more than € 20,000 (£ 17,400). In Sri Lanka, similar overcharging takes place in many restaurants but given that such places are “posh”, no consumer protection authority officials dare to check in on them.

One drawback in Sri Lanka is, despite many rules in place, food prices are not on public display as in most other countries. By displaying the menus in front of the restaurants or eatery, a consumer will have the opportunity to peruse it and decide if they would want to patronise a place or not. This rule should apply to all places, not only the smaller eateries and businesses.

While exploitation of tourists by unscrupulous persons must be dealt with in the strictest possible manner, more attention should be paid to crackdown on the inflated prices of food/drinks served to locals as well.

A good place to start would be to make the public display of prices mandatory so that consumers can make an informed choice. There has to be more transparency so that the consumers don’t get a raw deal as it often happens.