Sri Lanka’s Agricultural and Economic Measures
Sri Lanka has taken several steps to address the challenges faced by its agricultural sector, particularly in relation to the production and import of essential commodities like big onions and Keeri Samba rice. Trade, Commerce, Food Security, and Cooperative Development Minister Wasantha Samarasinghe recently provided updates on these efforts, highlighting both the progress made and the ongoing challenges.
One of the key developments is the purchase of over 70,000 kilograms of big onions by Lanka Sathosa from local farmers as of November 4. This initiative reflects the government’s commitment to supporting local producers. In addition, the private sector has also acquired significant quantities of big onions, contributing to the stabilization of the market.
Despite this positive development, the Minister noted that local big onion production this year has reportedly quadrupled compared to last year. To ensure that farmers benefit from this increased output, the government has raised the import tax on big onions from Rs.10 to Rs.50 per kilogram. This measure is intended to provide relief to local farmers by making imported onions more expensive and encouraging domestic consumption.
However, the Minister acknowledged that the increased import tax alone is not a complete solution for the farmers. The government is now focusing on providing necessary seeds and fertilizers to improve the quality and shelf life of locally produced onions, ensuring they can compete with imported varieties from India.
Looking ahead, the Trade and Agriculture Ministries are collaborating to develop a joint plan for 2026. This plan aims to prevent the issues currently faced by potato and onion farmers, such as price fluctuations and supply chain disruptions.
In another significant move, the government plans to increase the cultivation of Keeri Samba rice from the current 35,000 hectares to 50,000 hectares in the upcoming seasons. This initiative is aimed at preventing shortages and curbing fraudulent activities by large-scale mill owners who have been accused of manipulating the market.
Minister Samarasinghe highlighted that there is currently a shortage of about 100,000 metric tonnes of Keeri Samba rice in the country. To address this, a 12-day window was opened for importing alternative rice. To prevent future shortages, the government will increase Keeri Samba production starting this Maha season under the Yaya Pansiya (500 paddy fields) programme.
The government is also working on reducing the prices of consumer goods. Minister Samarasinghe stated that the prices of about 40 consumer goods have dropped by around 19% this year. He pledged that the government would continue to work on reducing the prices of several other essential goods in the near future.
The upcoming budget is expected to focus on nation-building, with an emphasis on improving the economic conditions of the people. The government’s efforts in agriculture and trade are part of a broader strategy to ensure food security, support local farmers, and stabilize the economy.
Key Government Initiatives
- Big Onion Production: Local production has quadrupled compared to last year, prompting the government to raise the import tax to Rs.50 per kilogram.
- Keeri Samba Rice Expansion: Cultivation will increase from 35,000 to 50,000 hectares to prevent shortages and reduce fraud.
- Consumer Goods Prices: Prices of 40 essential goods have dropped by 19%, with plans to further reduce costs.
- Agricultural Collaboration: Trade and Agriculture Ministries are developing a joint plan for 2026 to address challenges faced by farmers.