A hotel in Dambulla has been fined Rs. 500,000 after pleading guilty to selling bottled drinking water at triple its marked price, following strict legal enforcement by the Consumer Affairs Authority (CAA).
Key Highlights
- Sigiriya Kingdom Resort pleaded guilty to selling a Rs. 100 marked water bottle for Rs. 300.
- The Dambulla Magistrate’s Court imposed a penalty of Rs. 500,000 on the establishment.
- The Consumer Affairs Authority reiterated strict compliance with official Maximum Retail Price (MRP) regulations across all hospitality and retail businesses.
The penalty was handed down by the Magistrate’s Court against Sigiriya Kingdom Resort (Pvt) Ltd, situated on Rathmalgaha Ela Road, Vihara Junction, Dambulla. The legal proceeding followed an investigative raid carried out by officers attached to the CAA’s Matale District Office, who discovered that the hotel was selling a bottle of drinking water marked at Rs. 100 for Rs. 300.
When the case was presented in court, the resort management admitted to the charge, prompting the magistrate to impose the Rs. 500,000 fine to deter future price gouging in the hospitality sector.
The CAA clarified that the Rs. 100 marked price in this specific prosecution was the rate printed on the bottle at the time of the offense and noted the latest Gazette guidelines regarding Maximum Retail Prices (MRP) for bottled water. Under Order No. 96, published in Extraordinary Gazette No. 2492/29, standard retail caps for locally packaged bottled water are categorized by volume:
- 500ml – 999ml: Rs. 80
- 1L – 1.499L: Rs. 120
- 1.5L – 1.999L: Rs. 150
- 2L – 2.499L: Rs. 180
- 5L – 6.999L: Rs. 400
The consumer watchdog reminded hotels, resorts, restaurants, and retail vendors that charging above the prescribed MRP is illegal, regardless of the service environment. Consumers are strongly advised to check printed prices before purchasing, request receipts for all transactions, and report any instances of unfair trade practices or overcharging to the Consumer Affairs Authority via its dedicated hotline at 1977.