The Consumer Affairs Authority has taken action against three motorcycle dealers in Hettipola for failing to display prices and selling vehicles above authorised distributor rates, following investigations into price inflation driven by supply shortages.
The Consumer Affairs Authority (CAA) has concluded legal proceedings against three motorcycle dealers in Hettipola following raids conducted on July 27, 2026. The enforcement action targeted dealers suspected of selling motorcycles at inflated prices amid reports of strong consumer demand coupled with limited stock availability.
According to the CAA, an authorised motorcycle distributor had notified the authority that supplies of certain popular models were insufficient to meet market demand. To manage this situation fairly, the distributor established a waiting list operating on a first-come, first-served basis. However, investigations revealed that some dealers were circumventing this system by acquiring motorcycles using multiple individuals' names and subsequently reselling them to consumers at marked-up prices.
Three dealers faced charges in Hettipola Magistrate's Court. Maljee Auto City on Kurunegala Road was fined Rs. 10,000 after selling a motorcycle for Rs. 850,000, exceeding the authorised price of Rs. 790,000 by Rs. 60,000, while also failing to display prices. Pradeep Motors on Chilaw Road received an identical fine for similar violations, having sold a vehicle for Rs. 845,000 against the set rate. Lucky Enterprises was fined Rs. 5,000 solely for price non-disclosure.
The CAA has advised consumers to verify prices before making purchases and encouraged reporting of suspected price violations or non-disclosure through its 1977 hotline during business hours.
