Sri Lanka’s cement prices are expected to fall by LKR300-500/50kg bag (US$1.03-1.72/50kg bag) of cement, following a recent appreciation of the rupee. A 50kg bag was retailing at round LKR2600. “The reduction in prices is due to the strengthening of our currency, the falling interest rates and the current economic standards that we have put in place,” said Trade Minister, Nalin Fernando, according to EconomyNext.
“Although the fall in the dollar price is one of the reasons for the fall in cement and steel prices, it is not the sole reason,” a ministry spokesperson added. “Increasing electricity prices also play a role in the determination of production costs.”
Sri Lanka’s rupee collapsed from LKR200 to LKR360 to the US dollar in 2022, driving up inflation.It has since appreciated to around LKR295. A request has also been made to manufacturers to reduce the price of steel rods, to help lower the cost of housebuilding in the country.
