1. LAW RELATING TO
CONSUMER PROTECTION
IN SRI LANKA
By Maxwell start from slide 6

2. • Consumer protection legislation in Sri Lanka can be
traced back to the onset of the 2nd World War, an
era of scarcities in essential food commodities that
paved the way to pass the first ever legislation for
food and price control.
• These regulations were meant to implement a
rationing scheme of distribution of staple food
items, basically rice and wheat flour and to control
prices of such items.

3. • They continued to be in force until 1950 in
which year both the Price Control Act and the
Food Control Act were passed.
• Thereafter, different legislations were passed
to regulate the market prices of essential
commodities until the implementation of the
‘Free Open Market Competitive Economic
Policy” in 1977.

4. • Enactment of the Industrial Promotions Act caused
the removal of most items under price control.
• The Consumer Protection Act of 1979 was the first
legislation, which attempted to lay down Consumer
Rights while enforcing penal provisions against
offenders and to provide redress and compensation
to aggrieved consumers.

5. • The provisions of the Consumer Protection Act were
implemented by the Internal Trade Department.
• In 1987 the Fair Trading Commission was established
under the Fair Trading Commission Act No.1 of 1987.
• The mandate of the Fair Trading Commission was to
deal with monopolies, merges and other anti-
competitive practices while regulating the movement
of prices of selected goods.

6. Current Law as to Consumer Protection
in Sri lanka
• The Consumer Affairs Authority Act No 9 of 2003
repealed three former legislations namely; the
Consumer Protection Act of 1979, the Fair Trading
Commission Act of 1987 and the Control of Prices Act
of 1950.
• Therefore, Consumer Affairs Authority is the successor
to the former Internal Trade Department as well as the
former Fair Trading Commission. .
• The Act has created two institutions, Consumer Affairs
Authority and Consumer Affairs Council to deal with
matters relating to Consumer Affairs

7. Authority and Council
 Authority- The Authority consists of a
Chairman and not less than ten
members appointed by the Minister in
charge of the subject
 Authority is the main institution that
operates under the Act

8.  Council- Three members appointed by the
Minister in charge of the subject forms the Council.
Administratively it functions under the Authority.
 It has wide powers to determine matters referred
to it by the Authority, mainly in the anti
competitive areas.
 Further it could investigate anything referred to it
by Authority and can make recommendations to
Authority. E.g.. On price of a product

9. Consumer Affairs Authority ( CAA)
 Consumer Affairs Authority ( CAA) is vested with wide
powers from an overall supervisory power to regulate
trade, enter into written agreements with
manufacturers
 It is vested with the power of the District Court in
determining Consumer Complaints.

10. Objectives of the Authority
1. To protect consumer against marketing of goods
and services which are hazardous to life and
property
2. To protect consumers against unfair trade practices
and guarantee the consumers’ interest shall be
given due consideration
3. To ensure that wherever possible consumers have
access to goods and services at competitive prices
4. To seek redress against unfair trade practices,
restrictive trade practices or any other forms of
exploitation of consumers by traders.

11. • Powers Of The Authority In
Regulation of Internal Trade
A. Price marking, labeling and other issues
• 01. The Authority may issue general directions on labeling , price
marking, packaging, manufacture and sale of any goods [ Section
10]
• ( Any person who does not comply with or changes any label, pricing
or packing etc shall be guilty of an offence )
•

12. • 02. The Authority can enter into a written
agreement with a manufacturer or supplier
who sells goods as to the maximum price that goods
can be sold and to provide other conditions such as
manufacture, supply, storage, transport, distribution,
marketing, labeling etc. ( sec 14)
• 03. Authority either of its own motion or on
representations made to it by any other may review
any question to the price of any goods or the charge
for any service and thereafter report to the Minister.

13. • 04. Authority has made it compulsory for every trader to
exhibit a notice notifying the maximum retail price or
wholesale price of the goods available for sale on the products other
than the price is marked on the goods itself. ( sec 26)
• 05. As per the sec 28 of the Act, every trader who sells any goods shall on
demand issue to the purchaser a receipt setting out
– Date of the sale
– The quantity of the goods sold
– The price paid
– Whether the sale was wholesale or retail
– Any other spec imposed under any law

14. • B. Determining the Standards and specifications
relating to goods and services
01. The Authority may, for the purpose of protecting the
consumer, determine the standards necessary to ensure
the quality of goods and services [ Section 12 ]
• ( CAA has given directions to L.P. Gas industry comply
with the Standards set by Sri Lanka Standards Institute as
regards filling , refilling and selling of gas cylinders)

15. • 02 . CAA , under sec 10 can direct any manufacturer or trader
to mark the maximum retail price, batch number, expiry date on
the product .
• (As such it has directed , Flour and sugar sold in packs, soap, laundry
powder, baby products, confectionaries such as cakes and sweets sold in
packs or containers, toothpaste, batteries, bread sold in packs, dry fish and
maldive fish in packs, cheese sold in packs or containers, eggs sold in packs,
bottled water and many other items to have such details as prescribed)
• 03. Under sec 15 of the Act, it prohibit traders to refuse to sell
goods or conceal goods meant for sale.
• ( this will have effect on where goods becomes scares or impending price
increase)

16. • C. Specific Goods
• The Authority may determine the “Specific Goods” which is
essential for the living and place such goods under price
regulation for the well being of consumers. [ Section 18 ]
• Any item of goods or services may be “specified” as an essential
commodity by the Hon. Minister of Trade, Commerce & Consumer
Affairs in consultation with the Consumer Affairs Authority, acting
under Section 18 of the Act. E.g.. LP Gas
• Once an item is gazette, no importer, manufacturer or trader
can increase the price of such product without the prior written
approval of the Authority.
• A period of 30 days is provided for the Authority to examine the
application and convey the decision to the company.

17. • The Authority examines the cost structure pertaining to
an application for a price revision by making reference
to supportive documentary evidence furnished by the
applicant, and makes recommendations to the Board of
the Authority. ( cost structure format is given)
• The objective in examining a price is to ensure that
prices are not increased indiscriminately.
• The prices approved by the Authority for any particular
product may vary from brand to brand, which leaves
each brand identity undisturbed depending on the
special distinguishing features of a brand and the
company’s marketing strategies.

18. Ability of public to complain
 Any member of the public, any association of persons or any
organisation can complain the CAA about a product or service
provided at an excessive price.
 Counterfeit products/ sold with misleading/ low quality or any
other matter
 Further Minister or Authority on its own motion can investigate
and intervene on a price matter of goods or service
 ( for further details, please visit Sri Lanka’s Consumer Affairs
Authority’s Website. It has a wealth of information)

19. Other laws and Institutions for
consumer Protection in Sri Lanka
• 1. Food Act No 26 of 1980
• 2. Cosmetic Devices & Drugs Act No 27 of 1980
• 3. Sri Lanka Standards Institution
• 4. National Environment Act
• 5. Code of Intellectual Property Act No 52 of 1979
• 6. Public Utilities Commission
• 7. Telecommunications Regulatory Commission
• 8. Department of Weights and Measures
• 9. Insurance Board of Sri Lanka
• 10. Central Bank of Sri Lanka ( monetary Board)
• 11. Unfair Contract Terms Act.
• 12. Electronic Transactions Act No 19 of 2009
 13. Payment Devices Frauds Act No 30 of 2006

20. Always try to give the best to the
consumer!