Sri Lanka has brought back an import para tariff called the Ports and Airports Levy, to several grades of milk powder.
Milk powder has been removed from a list of PAL exemptions, making them liable for a 10 percent tax.
The PAL para tariffs are also a contentious issue in terms of export competitiveness, and the government has previously given undertakings that they will be eliminated.
Trade freedoms of the poor figure in an IMF/World bank reform program with the governments.
Milk is a protein rich food, in a country where children of poor families are facing stunting and malnutrition.
Economic nationalism is seen at high levels in food, with several businessmen are pushing for trade protection, amid an overall autarkist (self-sufficiency) ideology, going directly against policies followed in East Asia, which the same as hold up as examples.
Sri Lanka keeps dairy product prices up ostensibly to bring profits to a domestic dairy company and farmers.
Sri Lanka also keeps maize prices up, ostensibly to give profits to farmers and collectors.
