Business

‘Government temporarily takes one step forward after many backward steps on agriculture’

Published

4 years ago

2021/09/14

By Dr. Hemakumara Nanayakkara

Ever since April 2021, Sri Lanka’s agriculture and plantation sectors have been beset by needless difficulties as a result of an announcement, seemingly made on a whim, that Sri Lanka would switch to completely organic agriculture – effective immediately.

In doing so, the Government has jarringly halted all progress on efforts to develop these critical sectors, pushing the entire nation back many steps in the decision to ban import and use of all agro-chemicals and inorganic fertilizer.

A conflict of intentions and egos

By issuing such an extreme proclamation without a shred of scientific analysis into how these concepts could be practically implemented in Sri Lanka, they have done more harm than good to the expansion of true organic agriculture.

This is unfortunate because, as a concept, organic agriculture has many benefits. However, unlike what has been portrayed, it is not simply a matter of reverting to ‘ancient practices’. There is a deep and complex science to organic cultivation.

None of these complexities were understood or considered when the imprudent decision to ban all inorganic inputs was first announced. The assumption that ‘organic’ is just adding compost to soil has been the detriment of the directive. Hence, it was decided that imported chemical inputs were not necessary, not because organic agriculture is practical, but because imports require the Government to spend more of the nation’s now dwindling foreign reserves.

A little knowledge is a dangerous thing

In the months that have followed, everyone from academics to industry experts and farmers on the ground have been venting their frustration at the total breakdown of their regular cultivation practices as a result of this dangerously unscientific approach to agricultural reform.

After much condemnation, it was finally announced at the start of August that the Government was reverting their position. While not admitting it and maintaining that the ban is still in effect, probably to save face, the fact that they are relenting on import of chelated minerals, fertilizer mixes and micro-nutrients for specialist applications including for hydroponic cultivation and floriculture”, even if temporary, is a slight relief.

It may be assumed that technicalities of what these terms mean may be enough to dissuade the public from asking too many questions. But anyone with passing knowledge of agriculture would understand that chelated minerals and fertilizer mixes contain the exact same inorganic inputs which the Government is overtly claiming to ban – namely: Nitrogen, Phosphorus, and Potassium (NPK). These are the elements which are essential to plant nutrition and growth.

Prior to the invention of techniques to produce synthetic fertilizer in the early 1900s, guano – the accumulated excrement of seabirds and bats was the only known reliable source of fertilizer with NPK suitable for commercial agriculture at that time. This pressing demand for fertilizer led to many predictions of mass starvation, and it would have come to pass were it not for the invention of the Haber-Bosch technique for the manufacture of synthetic nitrogenous fertilizer.

While it is possible to obtain Phosphorus locally, and organic Potassium could be imported from natural mines – leaving aside the fact that supply chains are not in place to meet the entire national requirement – sourcing Nitrogen is much more problematic. That is because it is extremely difficult to obtain N from plant or animal sources at the levels necessary for commercial scale agriculture.

Currently, we use Urea for tea and paddy, which contains approximately 46% Nitrogen. By contrast, organic sources like Gliricidia offers only 4%, while cattle dung has 3.5% and poultry dung –with 4.5% nitrogen by composition.

Prior to the ban, NPK was used in paddy, tea, rubber and coconut, and after the latest relaxation, these are still the same inputs that are being used, so in practice the Government has taken 3 months to make a bad decision and then reverse it – all the while falsely maintaining that inorganic NPK is not acceptable.

Had the Government simply consulted with relevant experts in the field in an open and transparent manner, they could have avoided all of the detrimental effects which followed from this disastrous decision. While there mention of a “Presidential Task Force for a green socio-economy” at the outset, they have not been forthcoming about their logic or approach in any public forums.

We are aware that there is a person in that task force who has been presented as a professor who made the ludicrous claim that sea-weeds as tall as coconut trees can be harvested from the ocean and used as organic fertilizer. While it is true that such large seaweed growth does exist, it is only found in close proximity to the North Pole, hence it is of no relevance to Sri Lanka. We offer this example in order to shine a light on the absurd and utter lack of credible scientific information behind policy decisions at the highest levels of this Government.

Those who fail to learn from history are doomed to repeat it

If we continue to allow the State to intervene and interfere with the fundamentals of agriculture in Sri Lanka based on the whims of such individuals, what is the worst that could happen? Previously we were told that the import and use of all agrochemicals would be banned immediately. Thereafter, the deadline was pushed back to a period within 3 months – 1 cultivation season. Now they have temporarily reverted back to allowing agro-chemicals, but it is implied that these imports could once again be banned at any moment.

In the interim, the solution that is currently being offered is a “nitrogen extract” that will be used as a spray. No further details have been provided. We don’t know if this extract is organic, inorganic, from the moon or even Mars. All we do know is that the only possible high percentage nitrogenous extracts can only be obtained from a chemical base. If the Government is trying to deceive people, they may use chemically extracted nitrogen, which could in turn be sprayed on organic manure and distributed among farmers.

In effect, the Government is refusing to reveal what exactly we will be adding to our soil through such extracts. Until they do, we must continue to call for more clarity and transparency. This is especially crucial for any agricultural exports – especially tea – whose buyers are sensitive to Maximum Residue Limits (MRLs).

Another fact to consider: no country in the world has ever succeeded in going totally organic. There are however some cautionary examples from history of those who tried. The example of Bhutan has been often cited in recent months. There, it was announced that over a period of 20 years, Bhutan would systematically phase out inorganic inputs. Even after careful and intensive planning with broad stakeholder consultation and preparation, the country was only able to convert 10% of their arable lands into organic agriculture after 30 years of effort in total.

The author is a former State Minister of Agriculture, Former Governor of the Southern Province, and Sri Lanka’s only PhD in Organic Agriculture from the Post-Graduate Institute of Agriculture at the Peradeniya University

To be continued

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Business

Sri Lanka Customs exceeds revenue targets to enters 2026 with a surplus of Rs. 300 billion – Director General

Published

3 hours ago

2025/12/31

Priyan

The year 2025 has been recorded as the highest revenue-earning year in the history of Sri Lanka Customs, stated Director General of Sri Lanka Customs, Mr. S.P. Arukgoda, noting that the Department had surpassed its expected revenue target of Rs. 2,115 billion, enabling it to enter 2026 with an additional surplus of approximately Rs. 300 billion.

The Director General made these remarks at a discussion held on Tuesday (30) morning at the Sri Lanka Customs Auditorium, chaired by President Anura Kumara Dissanayake.

The President visited the Sri Lanka Customs Department this to review the performance achieved in 2025 and to scrutinize the new plans proposed for 2026. During the visit, the President engaged in extensive discussions with the Director General, Directors and senior officials of the Department.

Commending the vital role played by Sri Lanka Customs in generating much-needed state revenue and contributing to economic and social stability, the President expressed his appreciation to the entire Customs employees for their commitment and service.

Emphasizing that Sri Lanka Customs is one of the country’s key revenue-generating institutions, the President highlighted the importance of maintaining operations in an efficient, transparent and accountable manner. The President also called upon all officers to work collectively, with renewed plans and strategies, to lead the country towards economic success in 2026.

The President further stressed that the economic collapse in 2022 was largely due to the government’s inability at the time to generate sufficient rupee revenue and secure adequate foreign exchange. He pointed out that the government has successfully restored economic stability by achieving revenue targets, a capability that has also been vital in addressing recent disaster situations.

A comprehensive discussion was also held on the overall performance and progress of Sri Lanka Customs in 2025, as well as the new strategic plans for 2026, with several new ideas and proposals being presented.

Sri Lanka Customs currently operates under four main pillars, revenue collection, trade facilitation, social protection and institutional development. The President inquired into the progress achieved under each of these areas.

It was revealed that the Internal Affairs Unit, established to prevent corruption and promote an ethical institutional culture, is functioning effectively.

The President also sought updates on measures taken to address long-standing allegations related to congestion, delays and corruption in Customs operations, as well as on plans to modernize cargo inspection systems.

The discussion further covered Sri Lanka Customs’ digitalization programme planned for 2026, along with issues related to recruitment, promotions, training and salaries and allowances of the staff.

Highlighting the strategic importance of airports in preventing attempts to create instability within the country, the President underscored the necessity for Sri Lanka Customs to operate with a comprehensive awareness of its duty to uphold the stability of the State, while also being ready to face upcoming challenges.

The discussion was attended by Minister of Labour and Deputy Minister of Finance and Planning, Dr. Anil Jayanta Fernando, Deputy Minister of Economic Development, Nishantha Jayaweera, Secretary to the President, Dr. Nandika Sanath Kumanayake, Deputy Secretary to the Treasury, A.N.Hapugala, Director General of Sri Lanka Customs, S.P.Arukgoda, members of the Board of Directors and senior officials of the Department.

Business

Construction industry offers blueprint for Sri Lanka’s recovery

Published

4 hours ago

2025/12/31

Sahan Weerasooriya

Eng Nissanka N Wijeratne

The dawn of 2026 represents a time for critical recalibration, not just ceremony, for the nation’s vital construction sector, says Eng Nissanka N Wijeratne, Secretary General/CEO of the Chamber of Construction Industry (CCI).

In a New Year message, Wijeratne reframes the annual greeting as a strategic call to action. “For Sri Lanka’s construction industry – the true backbone of our economy – the turning of the calendar is an ideal moment for a realistic and forward-looking assessment,” he states.

His vision sketches a practical blueprint where the unprecedented challenges of the recent past become the foundation for a smarter, more sustainable future.

The industry, long considered a barometer of national prosperity, has weathered severe headwinds: economic volatility and spiraling material costs. “These were not mere business cycles, but unprecedented tests,” Wijeratne notes, acknowledging the severe strain on firms and professionals. Yet, the sector’s response, he observes, has been “nothing short of remarkable,” showcasing a deeply ingrained resilience.

The Chamber’s chosen theme for the year, “Resilience through Innovation,” signals a pivotal shift from enduring hardship to actively engineering progress.

The pathway forward, Wijeratne outlines, is built on three interdependent pillars.

First is the revitalization of Infrastructure. “This is not a simple call for new projects,” he clarifies, “but a strategic push to reactivate stalled ventures and initiate sustainable developments in concert with the government and international agencies.” He emphasises that construction activity is intrinsically linked to the broader economy’s pulse, where resuming projects catalyses employment, energises supply chains, and restores public confidence.

The second pillar, technological Integration, addresses the urgent need to modernise the sector’s core. Advocacy for Building Information Modeling (BIM), green building practices, and digital project management is a direct answer to past inefficiencies. “It is a commitment to ensuring Sri Lankan construction is not just rebuilt, but upgraded becoming more competitive, cost-effective, and environmentally responsible,” Wijeratne says. ” Innovation must move from slogan to practice, transforming how the nation conceives, builds, and maintains its infrastructure,” he notes.

The third pillar, consistent policy advocacy, underpins all efforts. The Chamber positions itself as a vital intermediary, fighting for fair pricing mechanisms, streamlined regulations, and a protective framework for local contractors. Wijeratne stresses that the best-laid plans of engineers can falter without a conducive policy environment, calling for a strengthened partnership with the state to create a level playing field where skill and enterprise determine success.

Ultimately, Wijeratne’s message is a powerful reminder of the industry’s profound legacy. “When we build, the nation grows,” he states, elevating construction from a commercial activity to a national mission. The structures that rise from the ground are more than concrete and steel; they are the schools, hospitals, roads, and homes that shape the nation’s future.

As Sri Lanka steps into 2026, the construction industry’s message is clear: it is ready to transform resilience from a trait of survival into a dynamic force for innovation.

The past challenges, according to Wijeratne, have been met with grit. Now, the future must be built with vision.

By Sanath Nanayakkare

Business

Expo Commodities and STAY Naturals honoured at the Presidential Export Awards 2024/25

Published

4 hours ago

2025/12/31

Sahan Weerasooriya

Expo Commodities (Pvt) Ltd, together with its member company STAY Naturals (Pvt) Ltd, has been recognized with Merit Awards at the Sri Lanka Export Development Board (EDB) Presidential Export Awards 2024/25, one of the country’s most prestigious platforms celebrating export excellence.

The awards were presented under the categories of Spices and Allied Products and Essential Oils, Oleoresins & Condiments, recognizing the companies’ consistent performance, product quality, and contribution to strengthening Sri Lanka’s presence in global markets.

The recognition reflects Expo Commodities’ continued focus on delivering high-quality, value-added Sri Lankan products while upholding international standards across innovation, sustainability, and responsible sourcing. Through STAY Naturals, the group has expanded its reach in key export markets, promoting Sri Lanka’s essential oils, oleoresins, and condiments derived from its rich agricultural heritage to customers worldwide.

The achievement also reflects the collective effort, technical expertise, and commitment of the teams behind the operations, alongside the continued trust of global partners and customers. Expo Commodities (Pvt) Ltd, part of Expo Commodities Global, is strategically focused on driving sustainable export growth and strengthening Sri Lanka’s global positioning as a reliable supplier of high-quality natural products.

Expo Commodities Global is a globally active Agri-commodity enterprise with operations spanning multiple origins including Sri Lanka, Vietnam, Indonesia, Madagascar, Comoros, Egypt, the UAE, India, Germany, and the Netherlands. The company specializes in the production, processing, and export of premium organic and conventional spices, coconut products, essential oils, oleoresins, and value-added agricultural products, delivering consistent quality through integrated and sustainable operations.

Expo Commodities Global and STAY Naturals (Pvt) Ltd are part of Aberdeen Holdings, a diversified Sri Lankan conglomerate with interests across pharmaceuticals, packaging, commodities, transport and logistics, power generation, and digital innovation, supporting long-term growth through strong governance, sustainability, and global market engagement.