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Red rice shortage blamed on RW, chicken implicated

Published

2 years ago

2025/01/12

ECONOMYNEXT –Sri Lanka’s red rice which disappeared from shop shelves after price controls were strictly enforced, was due to the ex-President Ranil Wickremesnghe distributing rice, Trade Minister Wasantha Samarasinghe claimed.

“The last government before the Presidential election did a dastardly (Alu-goth-theru, thaka-thiru wedak) before the presidential election,” Samarasinghe told parliament.

“They took red rice from mills in the South paying 10 rupee extra (per kilo) and distributed it around the country.”

“They gave red rice to people who do not usually eat it,” he claimed.

Red rice was mostly eaten by Sri Lankans in the South and the Ratnapura district, he claimed.

Sri Lankans consume about 2.4 million metric tonnes of rice a year, according to government data. This works out to 200,000 metric tonnes a month.

People also consumed about 100,000 metric tonnes of wheat, he said.

About 65 percent of the rice grown by farmers was Nadu (white grain used for par-boiled rice) and about 15 percent was kekulu rice according to Minister Samarasinghe.

About 15 percent was Samba and about 4 to 5 percent was Basmati rice used in hotels, he said.

Last year the paddy harvest from two seasons was 4.9 million metric tonnes according to official estimates, which should have given 2.9 million metric tonnes of milled rice, he said.

This should have resulted in a 500,000 tonne surplus, he said.

When rice prices went up towards the end of the year, (which happens in many years) ahead of the Maha harvests due to import controls, a narrative was initially spread that a ‘mafia’ of millers was hiding stocks.

“Now we know that there are no stocks,” he said.

Minister Samarasinghe said mills in the North Central, East and South were all checked.

It is a basic economic principle taught in first year economics that when a price control is set below the market clearing price goods go off the shelves and a ‘black market’ is created at the market clearing price.

The black market at which red rice is available is now around 270 rupees a kilo, compared to a price control of 220 rupees.

The Consumer Affairs Authority had embarrassed several governments and put consumers in difficulty with its price controls in the recent past.

In 2021 as the central bank printed money and prices went up, the then government also slapped price controls. But later, then Trade Minister Lasantha Alagiyawanna, realized the problem and apologized to the public for putting them in difficulty.

“We admit that the price controls created shortages,” Minister Alagiywanna said at the time in a very rare occurrence. “We apologize for the inconvenience caused to consumers. But the government did this with the best intentions.”

Authorities initially claimed that Nadu rice was being hidden by the ‘mafia’ and slammed a price control for Red rice ten rupee below.

An examination of past data shows that red rice price overtook that of Nadu and went close to the premium Samba rice in December as New Year demand went up and stocks ran down.

By setting a ceiling price below the market clearing price, a government can create a shortage in any good.

Chicken were also implicated in the rice crisis, he said.

A legislator interrupted to suggest that perhaps Minister Samarasinghe’s statistics were not correct.

“I was just going to get to that point,” Minister Samarasinghe said. “On one side there was a red rice shortfall, because red rice was distributed to those who did not do it.

“In Sri Lanka there are 125 lakhs of layer chicken. They have 80 lakhs of chicks. This industry buys 300,000 metric tonnes of rice a year.”

Red and white raw rice is also made into flour. There was also an ornamental fish industry that needed feed, he said.

“So, our departments, our institutions should reduce this from the harvest,” he said.

However, chickens have been farmed in previous years as well. Sri Lanka has government controls not only imports of rice but maize as well, which is the key ingredient of animal feed.

The current administration also relaxed the import of rice, but did not take off the tax which amount close to 50 percent of world prices.

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Landslide Early Warnings issued to the districts of Colombo, Galle, Gampaha, Hambanthota, Kalutara, Kandy, Kegalle, Kurunegala, Matara, Nuwara Eliya and Ratnapura

Published

8 hours ago

2026/09/26

Priyan

The National Building Research Institute has issued landslide early warnings to the districts of Colombo, Galle, Gampaha, Hambanthota, Kalutara, Kandy, Kegalle, Kurunegala, Matara, Nuwara Eliya and Ratnapura from 16:00 hrs on 25.09.2026 To 16:00 hrs on 26.09.2026

Accordingly,
LEVEL III [RED] landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Neluwa, Nagoda, Niyagama and Thawalama inthe Galle district, Ganga Ihala Korale, Udapalatha, Doluwa and Pasbage Korale in the Kandy district, and Kothmale West, Ambagamuwa, Kotmale East and Norwood in the Nuwara Eliya district.

LEVEL II [AMBER] landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Elpitiya, Baddegama and Karandeniya in the Galle district, Walallawita in the Kalutara district, Deltota, Udunuwara, Gangawata Korale, Yatinuwara and Panvila in the Kandy district, Aranayake, Dehiowita, Mawanella, Deraniyagala and Yatiyanthota in the Kegalle district, Thalawakelle in the Nuwara Eliya district and Ratnapura and Pelmadulla in the Ratnapura district.

LEVEL I [YELLOW] landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Seethawaka and Padukka in the Colombo district, Attanagalla and Mirigama in the Gampaha district, Katuwana and Walasmulla in the Hambanthota district, Ingiriya and Bulathsinhala in the Kalutara district, Hatharaliyadda, Poojapitiya, Medadumbara, Kundasale, Ududumbara, Thumpane, Akurana, Pathadumbara, Harispattuwa and Pathahewaheta in the Kandy district, Warakapola, Bulathkohupitiya, Galigamuwa, Kegalle and Ruwanwella in the Kegalle district, Mallawapitiya, Alawwa, Polgahawela and Mawathagama in the Kegalle district, Pitabeddara, Kotapola and Pasgoda in the Matara district, Nuwara Eliya in the Nuwara Eliya district and Elapatha, Ayagama, Nivithigala, Kuruwita and Kalawana in the Ratnapura district

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22A, Judicature Amendment Bills passed with 2/3 majority

Published

9 hours ago

2026/09/26

Thilina Walpola

Parliament yesterday passed the Twenty-Second Amendment to the Constitution Bill and the Judicature (Amendment) Bill with two-thirds majorities, with 158 MPs voting in favour and 63 against each Bill.

The Illankai Tamil Arasu Kadchi (ITAK) and Sri Lanka Muslim Congress (SLMC) voted with the SJB against the Bills.

NDF MPs Ravi Karunanayake and Faizer Musthapha and SJB Badulla District MP Nayana Wasalathilaka were not present when the votes were taken.

The final vote on the Judicature (Amendment) Bill was announced at around 8.08 p.m. after Opposition MPs called for divisions on its clauses during the Committee Stage.

The votes followed a two-day debate which commenced on Thursday (24), after Justice and National Integration Minister Harshana Nanayakkara presented the Bills for their Second Reading.

The Supreme Court’s determination on the Bills was presented to Parliament on Tuesday (22) by Speaker Dr Jagath Wickramaratne. The Court determined that the 22nd Amendment Bill did not require approval at a referendum and could be passed by a special two-thirds majority in Parliament.

The amendment provides for raising the mandatory retirement age of Supreme Court judges from 65 to 67 and that of Court of Appeal judges from 63 to 65. It also provides for the Chief Justice to retire at 67 or after completing six years in office, whichever comes earlier.

The Speaker informed Parliament that the Judicature (Amendment) Bill could be passed by a simple majority.

The SJB opposed the legislation and its MPs attended Parliament dressed in black yesterday. The party also staged a protest at Polduwa Junction, Battaramulla, under the theme “No to 22, which destroys democracy”, with Opposition Leader Sajith Premadasa and several SJB politicians participating.

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TIN mandatory for key transactions from Nov. 1

Published

9 hours ago

2026/09/26

Thilina Walpola

A valid Taxpayer Identification Number (TIN) Certificate will be required for a range of key transactions in Sri Lanka from November 1, 2026, the Inland Revenue Department (IRD) has announced.

The requirement, introduced under the Inland Revenue (Amendment) Act, No. 11 of 2026, applies to transactions specified under Section 102(3) of the Inland Revenue Act.

Accordingly, individuals will be required to produce a valid TIN Certificate when opening an account at a bank or financial institution, obtaining approval for a building plan, registering or renewing the licence of a motor vehicle, registering land or title to land, registering a business, transferring shares in a company incorporated in Sri Lanka or obtaining a credit card.

In the case of share transfers, both the transferor and transferee will be required to provide TIN certificates.

The IRD said officials handling such transactions had been instructed to ensure that a valid TIN Certificate was submitted before processing or completing the relevant transaction.

The Department advised those who do not already have a TIN to obtain one in advance through its e-Services platform.

It said a printout of the TIN verification result showing the applicant’s National Identity Card number and TIN could also be accepted instead of the certificate.The IRD also reiterated that obtaining a TIN is mandatory for resident individuals aged 18 and above under the applicable provisions.