Unprecedented costs shatter festive exuberance
The ever-increasing cost of living is further raising the prices of food, cake ingredients, festive decorations, clothing, and gifts, and adversely impacting preparations for Christmas.
Professional bakers and home bakers are grappling with ingredient costs and shortages of supplies.
The All Ceylon Bakery Owners’ Association's president, N.K. Jayewardena, reported a decrease in orders and reduced purchases, with only 50% of bakeries operating.
Both large and small-scale bakery operators have noted a decline in seasonal business.
A. Nadarajan, an accountant at the large-scale Victoria Bakery in Kompanna Veediya, said Christmas sales are not showing any signs of improving.
During the first two weeks of December, the bakery typically receives numerous orders, and they close in the second week. But there are no orders.
Christmas cakes and festive meals are not being prepared owing to skyhigh energy costs.
Red and white eggs sell for Rs. 60 and Rs. 65, respectively. Besides, chicken prices are also likely to soar from this week.
The rising cost of flour, sugar, vanilla, eggs, and butter, along with electricity charges, has led bakers to raise cake prices. They sell a kilo of butter cake for Rs. 1,250, while a kilo of chocolate cake is Rs. 1,350.
Meanwhile, A.L.M. Furkhan, owner of Latheefiya Stores, a one-stop baking supplies store in Pettah, said: “As yet, sales are broadly satisfactory, but there is a drop compared with previous years.”
Concerns about rising living costs are significantly influencing consumer patterns, the owner of another bakery in Kompanna Veediya noted.
“We used to receive cake inquiries and orders, including corporate orders, but no orders have been received thus far.’’
Sales of Christmas decorations have fallen too.
Muhammad Asmin, president of the Malwatte Road Hawkers Stall Complex in Pettah, said a decline in consumer demand for goods and services
has been clearly reflected in the price increase.
“A Christmas wreath, which was Rs. 375 earlier, is now being sold at Rs. 675. Christmas trees stand at Rs. 8,000 (2ft), Rs. 12,000 (5ft), Rs. 17,000 (6ft), Rs. 25,000 (7ft) and Rs. 30,000 (12ft) including 5% VAT,” he said.
M. H. Anas, another vendor, mentioned
that sales have dropped due to the high number of importers. People have further shown more interest in purchasing Christmas trees and decorations online.
Anuruddha Wijeratne, managing director of Lady J, an all-under-oneroof store, underscored that despite no significant price increase, core products such as children's wear, bedding,
and bathware maintain a consistent market presence.
“Expensive items are not moving well. People are becoming more interested in bio-degradable products in terms of home appliances, which is a positive sign for the local economy.’’
This Christmas is not looking festive at all for most.
The Sunday Times learns that too much strain has been put on people’s shoulders in the holiday season. Several families pointed out increased economic hardship due to rising inflation.
S. Balasundaram, who comes from a family of five from Wattala, said that higher prices are causing more stress this Christmas. “We are at our basics. We celebrate Christmas solely to bring joy and peace to our children, despite our hardships.’’
Dankotuwa resident Ms. N. Siriwardena, who works at a private company in Colombo, said that although the price of some popular gift items has climbed compared with the previous year, a vast array of options are available.