Business
Crop theft costing Sri Lanka’s agricultural sector millions: Industry calls for urgent government action
The Planters’ Association of Ceylon (PA) is calling on the government to treat the systematic theft of high-value agricultural crops as a serious economic threat, warning that unchecked losses are deterring investment, eroding export competitiveness and putting the livelihoods of farmers at risk.
Across Sri Lanka’s plantation districts, the organised theft of pepper, ginger, cardamom, cinnamon, vanilla, avocado and other high-value crops has reached a scale that the industry says can no longer be dismissed as an isolated or manageable problem. Regional Plantation Companies and smallholder growers have reported increasing losses that wipe out entire seasons of work and companies are spending tens of millions of rupees on security that cuts directly into their ability to compete internationally. The Association says in several cases, farmers and estate managers have abandoned expansion plans for high-value crops entirely after concluding that the returns cannot justify the risk.
The Association estimates that crop losses across the sector may be running into millions, though it is now seeking formally verified data from members to establish the true figure. What is already clear, the Association says, is that the financial damage extends well beyond the stolen harvest itself.
The scale of the problem
Theft operations are organised and deliberate. Association members report that incidents cluster around the full moon, when natural light allows groups to work through fields without torches. A well-coordinated team can strip a section of cinnamon in two to three hours, clear a cardamom plot in a single pass, or harvest 40 to 50 kilos of pepper from a single vine before dawn. Once the crop leaves the field and enters informal supply channels, it is effectively untraceable.
One company is currently spending approximately Rs. 20 million to protect a single crop over a three-month period. Those costs do not appear in any government measure of agricultural competitiveness, but they are real and recurring and they fall entirely on the producer. For estates already competing against lower-cost producers in Vietnam, India and Kenya, this adds further strain with RPCs losing revenue and the state losing tax income as a result.
Investment decisions already affected
The PA points to pepper as a crop where the damage to investor confidence has been most visible. Several growers who had begun trialing pepper a high-value crop with strong export potential have pulled back from expansion after sustained theft on their plots. Cardamom has been similarly affected. One company that committed to planting 18 hectares spent several years deploying watchers and security personnel before concluding that the cost was unsustainable. The project was not extended.
The government has publicly committed to growing Sri Lanka’s agricultural exports and attracting investment into the sector. The Association’s position is that this goal cannot be achieved while the conditions on the ground make high-value crop production an unacceptable risk for growers.
Existing law is not working
Agricultural theft is a criminal offence under existing Sri Lankan law. The Association’s concern is that the penalties attached to that offence bear no relation to its economic consequences. In many cases a fraction of the value of what was stolen provide no meaningful deterrent to repeat offenders. When the punishment is cheaper than the crime, the law becomes ineffective.
Technology has so far failed to fill the gap. CCTV systems are defeated by power cuts. Fingerprint entry controls have been circumvented. Drones face practical obstacles in shade-grown and wind-exposed terrain. The infrastructure installed to protect crops including fencing and other equipment has itself become a target for theft.
A call to action
Accordingly PA called on the Government to revise and effectively enforce the penalties for agricultural theft so that fines and sentences reflect the actual value of the crops stolen and create a genuine deterrent. The PA also called for the development of a traceability framework for high-value produce within informal supply chains, so that stolen crops can be identified and prosecuted once they leave the field. Lastly, the association called for the formal recognition of crop theft in national agricultural policy and allocate resources to enforcement accordingly.
The PA is also collecting verified data from its members on the scale of losses across both smallholder and estate operations, and intends to present this to the relevant government ministries.
“Sri Lanka has the climate, the land and the agricultural knowledge to be a serious player in high-value crop exports. But we cannot build that future if a farmer can spend nine months on a crop and lose everything the night before he is paid. This is not a minor inconvenience. It is a structural problem that needs a structural response,” the Planters’ Association of Ceylon said.
Business
Oil prices hit $100 for the first time since May
Oil prices hit $100 a barrel for the first time since May as the escalating conflict in the Middle East reignited fears over global energy supplies.
Brent crude – the global benchmark for oil prices – rose more than 6% on Thursday following several days of increases as the US stepped up military strikes against Iran.
Prices spiked after Houthi militia in Yemen attacked oil tankers in the Red Sea, threatening a key export route that Saudi Arabia has used to bypass the Strait of Hormuz.
Gas prices have also risen steadily over the past month, with the benchmark UK gas price currently at around 150 per therm, up from around 98p at the end of June.
Oil prices had been falling following a temporary ceasefire between the US and Iran.
They dropped back to levels last seen before the US and Israel began military action against Iran on 28 February.
However, the ceasefire has failed and this week US Secretary of State Marco Rubio said the people in charge in Iran were “not ready to make a deal”.
The ongoing conflict risks pushing up inflation for many countries, including UK and the US leading to higher prices for consumers.
Higher oil prices typically lead to petrol and diesel becoming more expensive.
While drivers are affected directly, households could also see prices of other goods, such as food, increase due to businesses passing on higher transportation costs to customers.
Inflation has fallen both in the UK – down to 2.6% in the year to June helped by slowing diesel and petrol prices – and in the US to 3.5%.
But questions remain whether the slow down will prove short lived due to the renewed conflict in the Middle East.
New data released on Thursday showed that UK petrol prices have risen by 5p a litre since the beginning of July, hitting reaching almost £1.56.
Diesel is at £1.72 a litre, on average, according to the RAC.
Average gasoline prices in the US have surpassed $4 a gallon once more, up from $3.92 a month ago, according to motorist advocacy group AAA.
“More expensive fuel and energy can ripple through the wider economy, increasing costs for businesses and ultimately feeding through into the price of food and other goods,” said Jonathan Raymond, investment manager at Quilter Cheviot.
“This creates another headache for central banks as they continue their battle against inflation.
“If energy prices remain elevated, policymakers may come under pressure to keep interest rates higher for longer or even raise them. This would come as a blow to mortgage holders and borrowers already feeling the strain.”
The Bank of England, which sets UK interest rates, has held them at 3.75% in its last four meetings.
Paul Dales, chief UK economist at Capital Economics, said he believed the Bank will “almost certainly” hold them again. But he said analysts still expected that interest rates could be cut next year if energy price rises ease.
Kevin Warsh, the newly-appointed chair of the US Federal Reserve, last week told Congress that the central bank had “no tolerance to persistently elevated inflation”.
US President Donald Trump had pushed Warsh’s predecessor, Jerome Powell, to cut interest rates.
Trump has made it clear he expects Warsh to fulfil his demand for reductions in borrowing costs for Americans.
But the Fed held US interest rates between 3.5% and 3.75% at Warsh’s first meeting last month. He also told Congress that he was committed to “restoring price stability” in the wake of the Middle East conflict impacting prices.
[BBC]
Business
SEC, CSE and CA Sri Lanka sign MOU to advance XBRL-based digital reporting for listed companies
The Securities and Exchange Commission of Sri Lanka (SEC), Colombo Stock Exchange (CSE), and the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) signed a Memorandum of Understanding (MoU) to collaborate on the implementation of eXtensible Business Reporting Language (XBRL) based reporting for companies listed on the CSE.
The agreement marks a significant milestone in Sri Lanka’s efforts to modernise corporate reporting and strengthen the digital infrastructure of the capital market. The initiative aims to streamline the submission of both financial and non-financial information by listed entities, enhancing transparency, accessibility and investor confidence.
The MoU formalises the partnership, following the establishment of a joint SEC-CSE committee tasked with driving the initiative. With the in-principle approval of the SEC, the committee has been working closely with CA Sri Lanka to develop the framework required for the successful rollout.
XBRL is the internationally recognised standard for digital business reporting, developed and maintained by XBRL International, a global non-profit consortium. The standard enables financial and business information to be reported in a structured, machine-readable format, facilitating more efficient analysis, comparison and interpretation of corporate disclosures by regulators, investors, analysts and other stakeholders.
The introduction of XBRL reporting is expected to deliver several key benefits for both listed companies and users of financial information. These include reducing reliance on manual data processing, improving the accuracy and consistency of reported information, supporting more advanced data analysis, and lowering long-term reporting costs. The flexibility of the XBRL framework also allows organisations to tailor taxonomies to meet specific reporting requirements. In addition, XBRL adoption will enhance market transparency and efficiency by enabling quicker access to comparable corporate information. It will also align Sri Lanka’s reporting framework with global standards, making the country’s capital market more accessible and attractive to international investors familiar with XBRL-based financial reporting.
Business
LOLC Insurance and Seylan Bank celebrate Bancassurance Excellence through “League of Greatness” 2025
LOLC Insurance recently hosted the “LOLC Insurance – Seylan Bancassurance Felicitation Night 2025” under the theme “League of Greatness,” celebrating the success of its longstanding bancassurance partnership with Seylan Bank. The event marked another milestone in a strategic collaboration that has continued to grow since 2013.
The felicitation ceremony brought together senior management, sales leadership, branch representatives, and top-performing teams from both organisations to recognise excellence, appreciate contributions, and reaffirm the enduring partnership between LOLC Insurance and Seylan Bank. The collaboration currently spans 104 Seylan Bank branches across Sri Lanka, delivering accessible life and general insurance solutions islandwide.
Speaking at the event, Ramesh Jayasekara, Director/Chief Executive Officer, Seylan Bank PLC, stated, “Our partnership with LOLC Insurance continues to create meaningful value for customers while further strengthening the bancassurance proposition within the banking sector. The dedication and collaborative spirit demonstrated by both teams have been instrumental in achieving these milestones and sustaining the growth of this partnership. We look forward to enhancing our collaboration and delivering greater value to customers in the years ahead.”
Sharing insights during the event, Eugene Seneviratne, Deputy General Manager – Retail Banking, Seylan Bank, added, “The professionalism and operational efficiency demonstrated by the bancassurance teams have been instrumental in consolidating this partnership. Our branch teams continue to seamlessly manage day-to-day bancassurance functions with minimal operational escalations, reflecting the strength of a well-structured and highly efficient framework. This has contributed to a smooth and mutually beneficial working relationship, enabling the partnership to enhance coordination, execution, and overall performance.”
Addressing the gathering, Kithsiri Gunawardena, Chairman/Principal Officer of LOLC General Insurance and Director of LOLC Life Assurance, stated, “Successful partnerships are built on trust, shared values, and a common vision. The strength and longevity of this collaboration reflect the commitment of both organisations to delivering meaningful impact to customers while advancing the country’s bancassurance sector. The positive feedback and appreciation consistently received from Seylan Bank regarding the quality of service delivered and the steadfast support extended by the teams stand as a testament to the professionalism and service excellence upheld throughout the partnership.”
-
Features6 days agoTwo memorable excerpts from a former SLAF commander’s memoir
-
Business6 days ago‘Giving up was never an option’: The fisherman who fought back after losing millions in SL
-
Latest News6 days agoDavis cup Asia/Oceania Group IV 2026 to be held in Colombo from 20th to 25th July
-
Life style6 days agoTaste of the Swiss Alps comes to Colombo
-
Features6 days agoErdoğan’s New Republic
-
Midweek Review3 days agoThree high-profile alleged suicides shaping key investigations
-
News7 days agoEvidence recorded in money laundering case against Yoshitha Rajapaksa
-
News7 days agoDengue outbreak gallops ahead: Infections surpasses 73,455, leaving 50 dead
