Raveen Ekanayake - Institute of Policy Studies of Sri Lanka

Safeguarding Consumer Interests
Towards Safer Food in Sri Lanka

Trade & Food Safety: An Emerging Challenge
Increased International Trade in Food Poses Both Benefits and Challenges
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Trade & Food Safety: An Emerging Challenge
Horse Meat Scandal - EU
Notifications from WTO members show an increasing use of non-tariff measures
(SPS &TBT)

Food Safety/Quality Risks : An Overview
Food Safety Risks
• Microbial pathogens (i.e., illness-causing bacteria, viruses, parasites,
fungi, and their toxins);
• Residues from pesticides, food additives, livestock drugs, and growth
hormones
• Foods produced or processed with practices perceived to involve
risks, such as radiation
Food Quality Risks
• Spoilage, contamination with filth, discoloration, off-odours
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Food Safety Risks: Sri Lanka
Growing incidence/threat of food safety and quality risks
• Melamine Contaminated Baby Food, Milk & Fish Feed (2008)
• Ecoli contaminated canned fruits (2011)
• Bird Flu infected Poultry
• Adulterated brown sugar mixed with sand (2013)
Documented incidence of substandard food entering the market has
been sparse, anecdotal evidence suggests otherwise
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Food Safety/Quality Risks: The role of Government
• Non-tariff measures (NTMs), such as SPS/TBT measures, are often the firstbest
instruments to address food safety and trade related concerns
• Sanitary and Phytosanitary Measures – Regulations Concerning food safety and
animal and plant health
• Technical Barriers to Trade - Regulations and standards which set out specific
characteristics of a product
• 94% & 23% of SPS and TBT measures respectively notified to the WTO relate
to trade in agriculture
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Correcting Market Failures: SPS & TBT
Information Asymmetry - producers can/ have the incentive to produce
and supply substandard products
MRLs, Standards & Certification could address market failure
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Correcting Market Failures: SPS & TBT
Labeling allows consumers to distinguish between quality and pay
according to their tastes.
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Need for Prudence in Designing/Enforcing Regulation
• Compliance leads to additional costs – Increased Fixed Costs & Variable
Costs
• Consequences of Cost Increases
• Producers cut back on export volumes
• Least efficient producers stop exporting altogether
• In the absence of a genuine market failure or inefficiently administered
such regulations may in fact reduce consumer welfare
• Reduction in the variety of goods available
• Rise in prices as a consequence of the reduced supply
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Food Safety Management in Sri Lanka
• MRLs - Refer to the upper legal levels of a concentration for pesticide/drug
residues in or on food
• Sri Lanka has yet to prescribe a national list of acceptable pesticides/drugs
and associated MRLs
• Exporters to do not have any incentive to comply with higher standards –
Heightened risk of substandard produce with unsafe level of
pesticide/chemical residue and/or banned substances being unwittingly
consumed
• Food safety risk management is conducted in a rather ad hoc and piecemeal
manner
• Food safety is a cross cutting issue needing a collaborative effort by all
agencies concerned – need for overarching independent body/institution
along the lines of the European Food Safety Authority, to better identify and
coordinate actions to address perceived food safety risks
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Way Forward
• Food Safety Risks are a Growing Concern Globally & Locally
• A good first step would be to establish an acceptable pesticide/drug list
and set MRLs
• Due prudence however must be exercised to when designing such
regulations to ensure unwarranted outcomes do not materialize.
• Investments must be made in testing and certification facilities to
ensure effective implementation of regulations
• Establishment of an overarching body to better coordinate all these
issues so that consumers in Sri Lanka can be ensured better food safety
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Thank You
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