The price controls imposed on sugar were lifted, Co-operative Services, Marketing Development and Consumer Protection State Minister Lasantha Alagiyawanna said.
He said the Government took this decision as a shortage of sugar was reported in the local market.
The decision was following a discussion between Finance Minister Basil Rajapaksa and sugar importers.
Alagiyawanna told the media that the sugar importers agreed to sell 1kg of sugar at Rs. 150 and to reduce prices when global market prices drop.
The Government imposed maximum retail prices ranging between Rs.122 to128 for white and brown sugar on September 2.