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COVID-19 fallout, economic turmoil, and import disruptions impact poultry sector
Sri Lanka’s Egg Price Crisis
The genesis of recent fluctuations in egg prices can be traced back to the COVID-19 pandemic, but the crisis was exacerbated by the mechanisms of the Ranil Wickremesinghe administration, Zahrah Imtiaz, Managing Editor of Singapore-based media organization, Asian Agribiz, which covers the Asian animal protein industry, has said in a recent article.
COVID created chaos in the poultry sector as farmers faced significant challenges in transporting their livestock, eggs, feed, and workers. With the distribution network in disarray and fewer buyers visiting farms, prices plummeted. At one point, farmers resorted to selling eggs at roadside stalls for as low as Rs 10 each, she said in an article for Project Footnotes, a web-based multimedia organization.
“As the pandemic continued, the poultry industry began to feel its full effects. The costs of imported raw materials, such as soybeans, vaccines, and other imported inputs skyrocketed due to rising shipping expenses. Compounding this, the Sri Lankan rupee depreciated, leading to a foreign exchange crisis that made imports increasingly difficult. The layer industry, which produces eggs, was slower to respond than the broiler meat sector, and the consequences became evident in 2022. By December 2022, egg prices had surged from Rs 22 per egg in January to Rs 70,” the article read.
Given below are excerpts of the article: “Several factors contributed to this dramatic increase. First, feed costs, which account for nearly 75 percent of production expenses, rose significantly. Small to medium-sized farmers, who dominate the layer industry, were hit hardest by the economic downturn and struggled to sustain their operations at such high costs. It’s estimated that over half of the egg farmers exited the industry during this period, resulting in a substantial supply shortage.
“In 2023, the industry faced another crisis: Avian Influenza (AI) was spreading rapidly in the countries where Sri Lanka imports its parent stock. These imported birds are raised locally to produce hatching eggs, then distributed to local layer farmers. Since it takes about five months for hens to mature and start laying eggs, the timing of these disruptions was critical. With the outbreak of AI globally, Sri Lanka found it challenging to replenish its stocks.
“In May 2023, the Government relaxed AI regulations to allow hatching eggs from AI-free areas, which helped inject much-needed stock into the industry. However, the long production cycle meant that it would take time for local farmers to recover. The high local egg prices at the time encouraged farmers to restart their operations.
“Amid these challenges, the previous regime imported eggs, disrupting the local market. In February 2023, for the first time, Sri Lanka opened its doors to egg imports from India, initially allowing them only for the bakery and hotel sectors under strict guidelines. This move was risky, as India had frequent AI outbreaks that could have potentially threatened Sri Lanka’s poultry industry, which had thus far remained free from the disease. Most layer farmers in Sri Lanka have small to medium farms, with open-cages.
“As imports began to flow and expanded to the retail market, they brought lower prices due to India’s cheaper production costs. However, the imported eggs were smaller than the larger, brown eggs that Sri Lankans typically prefer, and issues with cold chain transportation raised concerns about spoilage.
“The unpredictable nature of these imports introduced volatility in the local egg market, making it difficult for farmers to plan their production cycles amid sudden influxes of imported eggs.
“Fortunately, global feed prices began to stabilise by late last year, and shipping costs decreased. Feed prices have been more manageable this year, and production has steadily increased. By April, the Government declared that local production had become sufficient, halting imports. However, demand dropped in August, leading to a surplus and subsequent price crash.
“The primary concern for farmers at this stage is whether the revenue from egg sales will cover their feed and rearing costs. As the festive season approaches in November, demand is expected to rise again, but many farmers are not expecting much.
There were still a lot of eggs in the market, enough for the country’s daily consumption of seven million eggs. A lot of farmers are hoping current prices would hold, cautiously optimistic about how this eventful year will end.”
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Landslide Early Warnings issued to the Districts of Badulla, Kandy, Matale, Monaragala and Nuwara Eliya
The Landslide Early Warning Center of the the National Building Research Organaisation [NBRO] has issued landslide early warnings to the districts of Badulla, Kandy, Matale, Monaragala and Nuwara Eliya for a period of 24 hours effective from 1200 noon today [07th January].
Accordingly,
LEVEL III RED landslide early warnings have been issued to the divisional secretaries divisions and surrounding areas of Udadumbara in the Kandy district, and Nildandahinna and Walapane in the Nuwara Eliya district.
LEVEL II AMBER landslide early warnings have been issued to the divisional secretaries divisions and surrounding areas of Kandaketiya in the Badulla district, Wilgamuwa in the Matale district, and Mathurata and Hanguranketha in the Nuwara Eliya district.
LEVEL I YELLOW landslide early warnings have been issued to the divisional secretaries divisions and surrounding areas of Meegahakiwula, Lunugala, Welimada, Passara, Badulla and Hali_Ela in the Badulla district, Doluwa in the Kandy district,Ambanganga Korale in the Matale district, and Bibile in the Monaragala district
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Prez seeks Harsha’s help to address CC’s concerns over appointment of AG
Chairman of the Committee on Public Finance (CoPF), MP Dr. Harsha de Silva, told Parliament yesterday that President Anura Kumara Dissanayake had personally telephoned him in response to a letter highlighting the prolonged delay in appointing an Auditor General, a vacancy that has remained unfilled since 07 December.
Addressing the House, Dr. de Silva said the President had contacted him following the letter he sent, in his capacity as CoPF Chairman, regarding the urgent need to appoint the constitutionally mandated head of the National Audit Office. During the conversation, the President had sought his intervention to inform the Constitutional Council (CC) about approving the names already forwarded by the President for consideration.
Dr. de Silva said the President had inquired whether he could convey the matter to the Constitutional Council after their discussion. He stressed that both the President and the CC must act in cooperation and in strict accordance with the Constitution, warning that institutional deadlock should not undermine constitutional governance.
He also raised concerns over the Speaker’s decision to prevent the letter he sent to the President from being shared with members of the Constitutional Council, stating that this had been done without any valid basis. Dr. de Silva subsequently tabled the letter in Parliament.
Last week, Dr. de Silva formally urged President Dissanayake to immediately fill the Auditor General’s post, warning that the continued vacancy was disrupting key constitutional functions. In his letter, dated 22 December, he pointed out that the absence of an Auditor General undermines Articles 148 and 154 of the Constitution, which vest Parliament with control over public finance.
He said that the vacancy has severely hampered the work of oversight bodies such as the Committee on Public Accounts (COPA) and the Committee on Public Enterprises (COPE), particularly at a time when the country is grappling with a major flood disaster.
As Chair of the Committee responsible for overseeing the National Audit Office, Dr. de Silva stressed that a swift appointment was essential to safeguard transparency, accountability and financial oversight.
In a separate public statement, he warned that Sri Lanka was operating without its constitutionally mandated Chief Auditor at a critical juncture. In a six-point appeal to the President, Dr. de Silva emphasised that an Auditor General must be appointed urgently in the context of ongoing disaster response and reconstruction efforts.
“Given the large number of transactions taking place now with Cyclone Ditwah reconstruction and the yet-to-be-legally-established Rebuilding Sri Lanka Fund, an Auditor General must be appointed urgently,” he said in a post on X.
By Saman Indrajith
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Govt. exploring possibility of converting EPF benefits into private sector pensions
The NPP government was exploring the feasibility of introducing a regular pension, or annuity scheme, for Employees’ Provident Fund (EPF) contributors, Deputy Minister of Labour Mahinda Jayasinghe told Parliament yesterday.
Responding to a question raised by NPP Kalutara District MP Oshani Umanga in the House, Jayasinghe said the government was examining whether EPF benefits, which are currently paid as a lump sum at retirement, could instead be converted into a system that provides regular payments throughout a retiree’s lifetime.
“We are looking at whether it is possible to provide a pension,” Jayasinghe said, stressing that there was no immediate plan to abolish the existing lump-sum payment. “But we are paying greater attention to whether a regular payment can be provided throughout their retired life.”
Jayasinghe noted that the EPF was established as a social security mechanism for private sector employees after retirement and warned that receiving the entire fund in a single installment could place retirees at financial risk, particularly as life expectancy increases.
He also cautioned that interim withdrawals from the EPF undermined its long-term sustainability. “Even the interim payments that are given from time to time undermine the ability to give security at the time of retirement,” he said, distinguishing the EPF from the Employees’ Trust Fund, which provides more frequent interim benefits.
Addressing concerns over early withdrawals, the Deputy Minister explained that contributors have been allowed to withdraw up to 30 percent of their EPF balance since 2015, with a further 20 percent permitted after 10 years, subject to specific conditions and documentary proof.
Of 744 applications received for such withdrawals, 702 had been approved, he said.
The proposed shift towards an annuity-based system comes amid broader concerns over Sri Lanka’s ageing population and pressures on retirement financing. While state sector employees receive pensions funded by taxpayers, including EPF contributors, the EPF itself has been facing growing strain as it is also used to finance budget deficits.
Jayasinghe said the government’s focus was to formulate a mechanism that would ensure long-term income security for private sector employees, placing them on a footing closer to a pension scheme rather than a one-time retirement payout.
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