News
Spike in feed prices push small and medium poultry farms to the brink of closure
by Suresh Perera
With import restrictions pushing up poultry feed prices to an all-time high, a grave shortage of chicken and eggs is anticipated in the short term as small and medium scale producers are finding it increasingly difficult to keep pace with soaring production costs, a senior industry official warned.
A 50% drop in production has been projected within a few months as moderate farms are now unable to sustain their businesses and will eventually close down, says Ajith Gunasekara, president of the All Island Poultry Association.
“The reverberations will be felt in December when the demand balloons during Christmas”, he predicted.
He said that Sri Lanka produces only half of the poultry industry’s demand for maize, the main ingedient of poultry feed.
With consignments from India and Ukraine no longer coming due to import restrictions, the disruption in supplies has seen a spike in prices for the local produce.
A kilogram of maize has climbed to anything between Rs. 90-95 in the marketplace due to the non-availability of imports at competitive pricing, he said. “This will sound the death knell to small-time poultry farms”.
In any poultry farm, feed absorbs 70% of the operational cost, Gunasekara stressed. “Apart from maize, producers also have to procure soya, corn and vitamins at substantial cost for the feed combination”.
The prevailing Covid-19 related travel restrictions have also aggravated the crisis the poultry industry is grappling with as the continued closure of wholesale distribution points have crippled supplies to the retail chain, he complained.
This means the retail trade has no access to the produce to supply traders and mobile vendors who have been declared essential services to service consumers, he said.
There are a multitude of ‘meat shops’ run by poultry producers island-wide, but they have no stocks as wholesalers, who collect chicken from farms, have not been authorized to operate during the travel restrictions, he protested.
Those in the chicken processing business are also facing immense hardships as they have not been permitted to operate, he explained. “Overall, the losses suffered by the industry will be enormous”.
Retailers cannot be expected to collect stocks from farms in the provinces even if they are able to make it as they don’t have either freezer trucks or necessary storage facilities, Gunasekara pointed out. “Moreover, visits to farms have been restricted due to Covid-19 preventive measures”.
“We have asked the government to intervene in the matter as the industry is in deep trouble with skyrocketing poultry feed prices pinning down producers on the one hand and accumulating stocks in storage facilities on the other”, he noted.
He said that traders have also been dealt a big financial blow with stocks of chicken in their deep freezers no longer fit for consumption.
The farm gate price is Rs. 430 per kilogram of chicken (whole bird), but despite a MRP (Maximum Retail Price) of Rs. 550 in terms of the price control mechanism, it is being sold for Rs. 700 per kilo these days due to procurement difficulties, he continued.
The reluctance of people to eat fish due to contamination fears following the X-Press Pearl disaster has also triggered a bigger demand for chicken. Unlike fish, cooked chicken can be refrigerated and eaten for about a week by an average family, Gunasekara elaborated.
He said the annual demand for chicken is between 15,000 to 18,000 metric tons. There’s an annual surge of up to 18,000MT during the April-December festive season.
The production of eggs ranges from 700,000 to 800,000 per day. Purchased at a farm gate price of Rs. 12-14 each, retailers at present sell each for Rs. 20.
“We were prepared for a two-week lockdown, but with the continued closure, the situation is getting more desperate by the day”, he said.
News
Sri Lanka, India caught in US-Iran ship crisis
By Shamindra Ferdinando
Iran has sought the Indian intervention, at the highest level, to provide lifesaving support to the crews of empty Iranian vessels stranded just outside Sri Lanka’s 12-nautical mile territorial waters off Galle.
Sources familiar with the issue said that Iran had brought the developing situation to the attention of New Delhi as the crews of almost 20 vessels, included Indian nationals. Sources stressed that the group of vessels that unloaded crude oil a couple of months back were now stranded within Sri Lanka’s Exclusive Economic Zone (EEZ).
The US Navy torpedoed an unarmed Iran frigate, returning from India, on 04 March, 2026, about 19 nautical miles off the Galle coast. The unprovoked attack killed nearly 100 Iranians.
The Iranian Embassy in Colombo has inquired from the Indian High Commission of their response to the situation, sources said. The US has issued a global warning against providing food, water, medicine and other services to the Iranian vessels. The outcome of Iran-India talks on the issue at hand was not known, though sources asserted India may not throw its weight behind Iranian efforts to address the issue.
Responding to The Island queries, sources said both Sri Lanka and India were in a dilemma due to the US warning. India couldn’t ignore the plight of the Indian crew members and the Iranian vessels in its backyard.
The Sri Lankan government remains tight-lipped about the vessels stranded in its EEZ. Our efforts to elicit a response from relevant authorities were in vain. In addition to Indians, there are Bangladeshis among the crew members. Iran has explicitly stated the responsibilities of the countries concerned to provide assistance in terms of international law.
The Iranian position was articulated by its Ambassador to Sri Lanka, Dr.Alireza Delkhosh, recently. In a special statement, Ambassador Delkhosh emphasised that in terms of the Convention on the Law of the Sea (Article 98) as well as SOLAS and SAR
Conventions, Sri Lanka couldn’t refrain from providing the needs of the Iranian vessels stranded in its EEZ.
SLMC leader Rauff Hakeem lambasted the NPP government in Parliament for failing to provide assistance to the Iranian ships. The former Minister alleged that the government was simply carrying out dictates of the US. He strongly criticised the way Foreign Minister Vijitha Herath was handling the issue.
News
Namal further remanded
MP Namal Rajapaksa, who is in remand custody over the controversial Airbus deal, was further remanded until October 27 by the Colombo Magistrate’s Court yesterday (13).
Colombo Chief Magistrate Asanga S. Bodaragama made the order after considering submissions by officers of the Commission to Investigate Allegations of Bribery or Corruption and lawyers representing Rajapaksa.
News
IMF projects Lankan economic growth to moderate amidst mounting global uncertainties
Sri Lanka’s economy is expected to sustain its recovery over the next two years, although growth is projected to moderate amid mounting global uncertainties, according to the International Monetary Fund’s (IMF) latest World Economic Outlook.
In its World Economic Outlook 2026: Resilience Under Strain, Urgent Choices, the IMF projects Sri Lanka’s economy to expand by 4% in 2026, slowing to 3.7% in 2027, following estimated growth of 5% in 2025.
Inflation, meanwhile, is forecast to rise to 5.3% in 2026 and 5.4% in 2027, reversing the average deflation rate of 0.5% recorded in 2025.
Unemployment is expected to remain steady at 3.9% throughout the forecast period.
The projections come amid growing pressure on the global economy from the ongoing conflict in the Middle East, elevated energy prices, geopolitical tensions and trade disruptions.
Sri Lanka’s external position is also expected to weaken, with the current account balance projected to shift from a surplus of 1.6% of gross domestic product (GDP) in 2025 to deficits of 0.5% in 2026 and 0.3% in 2027.
The IMF’s outlook points to continued economic expansion in Sri Lanka, but with slower growth, rising inflation and a narrowing external surplus giving way to current account deficits over the forecast period.
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