The Consumer Affairs Authority (CAA) has stepped up action against businesses that sell regulated goods above approved prices. Two recent court cases have resulted in fines totalling Rs. 1.5 million for overpricing bottled drinking water and imported Keeri Samba rice.
The Bandarawela Magistrate’s Court fined Hotel, located in Nafora Ella, Karadagolla, Rs. 1 million for selling bottled drinking water above the regulated price.
CAA officers from the Badulla District carried out a raid on 10 July. During the inspection, they found the hotel selling bottled drinking water above the approved retail price. When the case came before the court on 22 July, the company pleaded guilty. The court then imposed a Rs. 1 million fine.
In a separate case, the Galle Magistrate’s Court fined a retail outlet in Akmeemana Rs. 500,000 for selling imported Keeri Samba rice above the maximum retail price.
CAA investigators found the shop selling one kilogram of imported Keeri Samba rice for Rs. 270. The government-approved maximum retail price is Rs. 255. The business owner admitted the offence in court, and the Magistrate imposed the fine.
Businesses Must Follow Price Regulations
These rulings show that the CAA is continuing to enforce consumer protection laws. The authority is taking legal action against businesses that charge more than the approved prices.
Businesses that sell price-controlled goods must follow government pricing regulations. They must not charge more than the approved maximum retail price. Businesses that break these rules may face prosecution, heavy fines and other penalties under the Consumer Affairs Authority Act.
The CAA also encourages consumers to report suspected violations. Complaints about hotels, restaurants, supermarkets and other businesses can be made through the 1977 hotline during office hours.
Economic & Regulation Prices & Fares
Last modified: July 26, 2026
