Business
Food Fight: Sri Lanka’s Battle for Food Security
By Lakshila Wanigasinghe
World Food Day is observed on 16 October to promote awareness and action to ensure regular access to nutritious food for all. The blog examines Sri Lanka’s struggle to safeguard food and nutrition security amidst the ongoing economic crisis and outlines policy steps to tackle the challenge.
Sri Lanka’s economic crisis continues to affect the lives and livelihoods of its people, with the burden being highest on the poor and vulnerable. The situation has progressed from bad to worse, with debt problems spiralling down to impact every aspect of the economy adversely.
Sri Lanka’s Food Crisis
Global disruptions including COVID-19, the climate crisis and Russia’s invasion of Ukraine earlier this year, have impacted food supplies worldwide. However, Sri Lanka’s food insecurity is largely a result of the prevailing economic crisis coupled with short-sighted policies enforced by local policymakers. The overnight ban on chemical fertiliser imports has been costly and generated a lower harvest. Although the ban has since been reversed, it continues to have ripple effects on the food system.
The drastic drop in domestic yield has driven policymakers to spend more money importing necessary commodities previously produced locally, including staples like rice. This move has been detrimental at a time when foreign reserves are lacking. Additionally, import controls imposed by the government have led to certain food items becoming scarce. These supply shortages have led to increases in the prices of essential foods. With food inflation reaching 95% in September, Sri Lanka ranks among the top five countries with the highest food price inflation.
As food becomes scarce and prices continue to rise, more people – the poor in particular – cannot afford proper meals. Adding to the problem are inflationary pressures, the inability of wages to keep up with inflation and income losses induced by the economic crisis. Thus, households are left in a predicament to reduce expenses, including cutting down on consumption expenditure. A World Food Programme (WFP) survey reveals that 79% of households are adopting food-based coping strategies to deal with the crisis.
This affects both the quality and quantity of food consumed. Families are likely to resort to cheaper and unhealthy alternatives (78% of families) due to the inability to afford high-quality, nutritious food. They are also likely to reduce portion sizes (49%) or skip meals entirely (39%), resulting in individuals not meeting their required daily calorie intake. For children, eating less directly impacts growth and contributes to increasing the already high rates of child malnutrition in the country. For adults – considering the rapidly ageing population in Sri Lanka – undernourishment implies severe strains on the healthcare system in the future.
Government Action to Combat
Food Insecurity
The interim Budget proposed to allocate LKR 46,600 million for crisis-related initiatives, including providing LKR 10,000 per food-insecure family and an additional monthly allowance of LKR 2,500 for pregnant mothers for four months respectively. A further LKR 400 million was allocated for the Department of Agriculture to provide farmers with seeds/planting material urgently and LKR 40 billion for fertiliser for paddy cultivation for the 2022/2023 ‘Maha’ season. Additionally, the government recently initiated a National Food Security Programme. The interim Budget also proposed establishing youth agriculture companies, writing off paddy farmers’ outstanding loans, etc. While the success of these initiatives is yet to be realised, it will depend entirely on the effectiveness of implementation. However, the pressure for timely success is high and critical for combating food insecurity.
Overcoming Hunger and Achieving
Food Security
While long-term strategies are needed to counter the underlying causes of food insecurity and ensure sustainable domestic production, swift action must be taken to tackle the challenge of ensuring people do not go hungry at present. Supporting immediate food needs amid the prevailing economic crisis requires a twofold effort: protecting the (1) poor and (2) farming community. In this regard, targeted measures to support the poor and near-poor through policy interventions and strengthened social safety nets are vital. The government has already allocated funds in this regard; however, successful implementation depends on accurately identifying groups at risk of starvation and providing them with immediate food assistance through subsidised products or cash transfers.
Attention should also be directed towards middle-income earners, who often get left behind in aid processes but may be in dire need of support given Sri Lanka’s current economic standing. Measures should also be taken to guarantee food availability across all parts of the country, thus ensuring equitable access. Protecting farmers’ livelihoods require adequate fertiliser availability at reasonable prices. More efficient use of fertiliser and high-quality seeds also play a role in ensuring limited supplies last longer. This will secure a harvest that can better support domestic demand next season. The government can also repurpose idle land for crop production and encourage small-scale farming.
Given the debt crisis, although import restrictions on certain foods are needed, they tend to be counterproductive. As evident from the global food crisis in 2008, trade restrictions drove up food prices rather than subsidising them. Moreover, stricter regulations should be in place to ensure consumers are not overcharged for high-demand items, as was evident for milk powder and fuel earlier this year. Minimising the high levels of food wastage (approximately 3,963 tonnes per day) also plays a crucial role in satisfying immediate food needs. Not stockpiling food, purchasing homegrown products, and consuming leftovers at a later stage/restaurants donating leftovers to the poor are ways households and businesses can contribute to combating food insecurity.
A food crisis during an economic crisis is a catastrophic scenario. Given that over one-third of the population is presently food insecure, it is imperative that Sri Lanka promptly takes corrective action. While several measures have been introduced in this regard, they must be subject to timely revaluations to gauge effectiveness. Given the prevailing resource constraints, it is natural for government support to target the poor and vulnerable solely. However, working towards acquiring international assistance to support immediate food needs, especially targeting those just above the poverty line and groups traditionally excluded from aid programmes, may also be required. These actions must be coupled with medium- to long-term initiatives that ensure sustainable food production in the future. Moreover, policymakers must be willing to be flexible and change their course of action if needed, given the volatility of the current situation. The consequences of not doing so will leave lasting impacts on the lives and livelihoods of the people.
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Lakshila Wanigasinghe is a Research Officer at the IPS with research interests in poverty, social welfare, development, education, and health. She holds an MSc in Economics with a concentration in Development Economics and a BA in Economics with concentrations in International, Financial and Law and Economics from Southern Illinois University Carbondale (SIUC), US. (lakshila@ips.lk)
Business
Sri Lanka’s midnight fuel price hike sparks frustrations amidst claims of broken assurances
The government’s decision to raise fuel prices at midnight on March 9 has drawn criticism from observers who say the move contradicts earlier assurances that prices would remain stable for at least a month due to sufficient reserves already imported.
The surprise revision in fuel prices has triggered public concern and renewed debate over the government’s fuel pricing policy, with critics accusing authorities of misleading the public about the stability of supply and prices.
Officials had earlier sought to calm fears of potential shortages or sudden price increases, insisting that the country had adequate fuel stocks secured through prior imports. However, the latest price hike has raised questions about the reliability of those assurances.
Economic analysts say the development reflects the continuing vulnerability of Sri Lanka’s fuel market to global price volatility and geopolitical tensions affecting energy supply chains.
Aminda Methsila Perera, an economics professor at Wayamba University of Sri Lanka, said the latest move raises broader questions about the transparency of the government’s pricing strategy.
“The question arises whether the government is following a grey-market policy in this regard,” Prof. Perera said, suggesting that the manner in which prices are adjusted may not fully reflect a transparent or predictable formula.
Meanwhile, directors of the state-run Ceylon Petroleum Corporation (CPC) defended the decision, saying the increase was a pre-emptive measure aimed at cushioning the country from steeper price shocks in the near future.
A CPC director argued yesterday that implementing a moderate price revision now would allow authorities to manage potential increases more effectively should the international situation deteriorate further.
Meanwhile, an analyst said that the move was intended to preserve the financial stability of the CPC and its bottom line although President AKD had said in parliament that the Treasury had enough funds to mitigate global shocks.
However, they say the abrupt nature of the midnight announcement risks undermining public confidence, particularly after repeated assurances that prices would remain unchanged in the short term.
With global energy markets remaining volatile, analysts warn that further price adjustments cannot be ruled out if international crude prices continue to climb or if regional supply disruptions intensify.
Meanwhile, an economist said that with the unfolding scenario, many Sri Lankans already grappling with the rising cost of living, have been tossed to the fire from the frying pan.
By Sanath Nanayakkare
Business
Women-only screening of “Gahanu Lamai” for International Women’s Day 2026
In celebration of International Women’s Day 2026, Havelock City Mall (HCM) hosted what is believed to be one of Sri Lanka’s first women-only cinema screenings, presenting a culturally significant and deeply meaningful tribute to womanhood.
Held at Scope Cinemas, Havelock City Mall, the exclusive event featured a complimentary screening of the iconic Sri Lankan film Gahanu Lamai, and welcomed an audience comprising corporate invitees, celebrities, female staff of Havelock City Mall, and winners of a special social media contest.
The occasion was further distinguished by the presence of Dr. Ranee Jayamaha, Chairperson of Overseas Realty (Ceylon) PLC, who graced the event and added significance to this special celebration.
Guests arrived dressed in purple, the internationally recognised symbol of dignity, solidarity, and justice, reinforcing the spirit and symbolism of the occasion. Through the screening of Gahanu Lamai—the acclaimed work of the late Dr. Sumitra Peiris, Sri Lanka’s first female film director—Havelock City Mall created a platform for reflection on the enduring cultural and contemporary relevance of women’s stories.
Commenting on the initiative, Mrs. Avanthie De Zoysa, Assistant General Manager of Havelock City Mall, stated:
“As a female manager of this organization, I am incredibly proud of this initiative. It is a heartfelt gesture of appreciation for the women who contribute so tirelessly to their families, to our society, and to the country at large. We wanted to provide a space that wasn’t just about celebration, but about acknowledging the profound impact women have in every sphere of life.”
Business
Novus Technologies joins LankaPay Technovation Awards 2026 as Platinum Sponsor
Novus Technologies has announced its partnership as the Platinum Sponsor for the LankaPay Technovation Awards 2026, reaffirming its commitment to driving innovation, financial inclusion, and the future of fintech in Sri Lanka.
Organised by LankaPay (Private) Limited, the LankaPay Technovation Awards has emerged as a premier industry platform recognising institutions that are spearheading digital transformation across the country.
The initiative celebrates banks, financial institutions, and technology providers that are enhancing customer experience through secure, efficient, and inclusive digital payment solutions.
Industry analysts note that the awards have played a pivotal role in strengthening Sri Lanka’s fintech ecosystem by encouraging competition, innovation, and collaboration among stakeholders.
Over the years, the platform has highlighted advancements in real-time payments, mobile banking, and integrated digital financial services, supporting the broader national agenda of building a digitally empowered economy.
Novus Technologies, a leading technology solutions provider to the banking and financial services sector, said its sponsorship reflects its long-standing dedication to accelerating the adoption of digital financial services and enhancing technological capabilities across the industry.
“As Sri Lanka continues its digital transformation journey, it is vital that we collectively foster innovation while ensuring security and inclusivity within the financial ecosystem,” a spokesperson for Novus Technologies said.
“Supporting initiatives such as the LankaPay Technovation Awards aligns with our mission to enable next-generation fintech solutions that empower institutions and customers alike.”
The awards ceremony is expected to bring together senior banking executives, fintech leaders, policymakers, and technology innovators, offering a platform to recognise excellence and share insights on emerging trends shaping the future of digital finance in Sri Lanka.
Novus Technologies is a forward-thinking technology solutions provider specialising in delivering innovative, secure, and scalable solutions to the banking and financial services industry.
With a strong focus on digital transformation, system integration, and next-generation fintech solutions, the company continues to play a key role in shaping Sri Lanka’s rapidly evolving digital landscape.
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