Policy Brief. Food prices: an effective way of shifting diets towards healthier habits in Sri Lanka
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This policy brief examines food prices and responsiveness to food prices, focused on the main food groups in Sri Lanka.
One factor that determines food choices are food prices, which then in turn impacts the nutritional status of a population. In Sri Lanka, the cost of energy-dense food (finger millet, cassava, sugar, edible oil) is relatively lower when compared to those of low-energy dense, healthier food (such as fruits and vegetables). Due to the rising tide of over-nutrition leading to a higher rate of non-communicable diseases, and the prevalence of undernutrition and micronutrient deficiencies, Sri Lanka is in an urgent need to design robust pricing strategies rather than rely on short-term price fixing. While the cost of healthy and unhealthy foods is not the only factor determining diets and nutrition outcomes, it is nevertheless an important one, and therefore these policies should aim to transform population diets towards healthier and affordable food options.
Despite the role of food prices in shifting diets, in Sri Lanka, pricing policies have not considered this potential and have been used to serve different purposes. In this respect, this policy brief examines prices and responsiveness to prices focused on the main food groups in Sri Lanka; discusses the role of subsidies and taxes as potential tools to effectively drive changes in Sri Lankan diets; and concludes with relevant policy recommendations.