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Impact of Trade Policies on Sri Lankan Households’ Food Consumption: A CGE Model Approach

Mendis, S.S., Edirisinghe, J.C. and Jayasinghe-Mudalige, U.K.


This study was carried out with the objectives of modeling and simulating the impacts of such policies on household food consumption in a Computable General Equilibrium (CGE) modelling framework. In examination of the impact of key policy tools hitherto employed by the government of Sri Lanka by CGE analysis reveals that there is a distributional issue of the negative impacts of these policy changes on rural and urban food consumption. The results reveal that import duties affects the rural sector more than the urban sector. Both sectors increase consumption when export duties are present for food products and vice versa. However, import duties are more severely felt in the urban than the rural sector.

KEYWORDS: CGE model, Food consumption, SAM, Trade policies

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