Connect with us

Business

Food Fight: Sri Lanka’s Battle for Food Security

Published

on

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.

Link to original blog:

Food Fight: Sri Lanka’s Battle for Food Security

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)



Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Low-quality coal shipment affects Lakvijaya coal power plant operations

Published

on

Operations at Sri Lanka’s main coal-fired power facility, the Lakvijaya coal power plant, suffered a significant disruption soon after a new shipment of coal was introduced, raising concerns over generation stability and environmental emissions.

Energy analyst Dr. Vidura Ralapanawa said in a social media post that the plant began using coal from “Ship 11” on Wednesday, following confirmation from officials of the Ceylon Electricity Board (CEB).

However, almost immediately after the new batch of coal was fed into the system, the plant’s generation capacity began to decline due to the poor quality of the fuel.

According to Dr. Ralapanawa, the plant’s output dropped by about 82 megawatts overall. Unit 1 recorded a drop of 45 MW, Unit 2 fell by 15 MW, and Unit 3 declined by 22 MW shortly after the coal was introduced.

The situation worsened later in the night when two coal mills in Unit 3 reportedly became clogged around 11 p.m., causing a rapid fall in generation capacity. Unit 3, which normally operates at a higher output level, was said to be running at around 170 MW following the malfunction.

Coal mills are a crucial component in coal-fired power generation. They grind raw coal into a fine powder before it is fed into the boiler for combustion. Each generating unit at the Norochcholai facility is equipped with five coal mills, and any obstruction in these systems can severely affect plant operations.

When mills become clogged, plant operators often have to rely on diesel-fired burner guns to stabilise the flame inside the boiler. While this helps maintain combustion, it significantly increases operating costs because of the high price of diesel.

The heavy use of diesel has another consequence. According to Dr. Ralapanawa’s post, when diesel firing increases, the plant’s Electro-Static Precipitators (ESPs) must be shut down. ESPs are designed to capture and remove particulate matter such as fly ash before emissions are released through the chimney.

With the ESPs switched off, large amounts of fly ash may be released into the atmosphere, potentially affecting surrounding communities.

Dr. Ralapanawa further noted that the coal shipment appears to have low calorific value, low volatile matter, and high ash content, all of which reduce combustion efficiency. In addition, the coal reportedly has a low grindability index, making it harder to pulverise and increasing the likelihood of mill blockages.

He added that while the immediate clogging of the mills may be cleared within a day, the underlying quality issues with the coal could make the problem persistent.

The development comes amid earlier assurances from officials of the Ceylon Electricity Board that the Norochcholai plant could be operated effectively even with lower-quality coal supplies.

The Norochcholai facility, with an installed capacity of 900 MW, is the largest power station in Sri Lanka and a critical component of the national grid. Any disruption to its operations can have wider implications for the country’s electricity supply, potentially forcing the system to rely on more expensive oil-based power generation.

Engineers are currently working to address the clogged mills and stabilise generation, but energy analysts warn that unless the fuel quality improves, similar operational issues could recur.

By Ifham Nizam

Continue Reading

Business

CSE regains some positive terrain but challenges remain

Published

on

CSE trading yesterday was positive overall on account of local economic growth prospects but concerns deriving from West Asian tensions lingered.

The market is still recovering from previous days’ uncertainties, market analysts said.

The All Share Price Index went up by 256 points, while the S and P SL20 rose by 63.8 points. Turnover stood at Rs 5.68 billion with nine crossings.

Seven crossings were reported in HNB Finance where 130 million shares crossed to the tune of Rs 1.1 billion; its shares traded at Rs 8.50, LMF four million shares crossed for Rs 348 million; its shares traded at Rs 87, Commercial Bank 661,000 shares crossed for Rs 142 million; its shares traded at Rs 215, Seylan Bank (Non-Voting) 750,000 shares crossed for Rs 49 million; its shares sold at Rs 75.50, ACL Cables 500,000 shares crossed for Rs 49 million; its shares traded at Rs 98, HNB 100,000 shares crossed for Rs 43.2 million; its shares sold at Rs 432 and Access Engineering 500,000 shares crossed for Rs 38.5 million and its shares fetched at Rs 77.

In the retail market companies that mainly contributed to the turnover were; HNB Finance Rs 331 million (34.8 million shares traded), Lanka Credit and Business Finance Rs 184 million (21.6 million shares traded), LOLC Holdings Rs 180 million (320,000 shares traded), Commercial Bank Rs 167 million (774,000 shares traded), Softlogic Capital Rs 138 million (twelve million shares traded), Sampath Bank Rs 124 million (789,000 shares traded) and ACL Cables Rs 123 million (1.26 million shares traded). During the day 330 million share volumes changed hands in 36639 transactions.

It is said that the banking and financial sectors performed well. HNB Finance was active in the financial sector, while Commercial Bank and HNB were active in the banking counters.

Further, National Development Bank has received Colombo Stock Exchange approval in principle to list Rs 16 billion of 11.50, 11.04 and 11.85 percent debentures, it said in a CSE filing.

NDB will issue 120 million Tier 2, listed, rated, unsecured, subordinated, redeemable Basel III compliant GSS+ bonds with a non-viability conversion, at Rs 100 each.

Yesterday the rupee was quoted at Rs 310.70/85 to the US dollar in the spot market, weaker from Rs 310.30/60 the previous day, dealers said, while bond yields were broadly steady.

By Hiran H Senewiratne

Continue Reading

Business

Indian Ocean under fire: Parliament explodes over the sinking of ‘IRIS Dena’

Published

on

A new crisis looms with a second Iranian vessel at the doorstep

Sri Lanka’s parliament became a secondary battleground yesterday as the sinking of the Iranian frigate IRIS Dena ignited a fierce debate over national sovereignty, regional maritime priciples, and the government’s perceived ‘strategic paralysis.’

While the Navy’s rescue of 32 sailors was initially painted in shades of heroism, Opposition MPs have now unfurled a narrative of missed warnings and geopolitical betrayal.

In a scathing address, Opposition firebrand Chamara Sampath Dissanayake challenged the circumstances of the vessel’s arrival in Sri Lankan waters. The IRIS Dena had been a guest of the Indian Navy during the MILAN-2026 exercises just days prior. Dissanayake alleged that at the conclusion of the fleet review, the vessel was effectively ‘put out’ of India, leaving the crew with no choice but to steer toward Sri Lanka.

“This was a deliberate attempt by the host to put a guest in harm’s way,” Dissanayake charged, stopping just short of naming India directly while making the implication undeniable. He argued that Sri Lanka had been ‘set up’ to deal with the fallout of a targeted strike that occurred only 11 nautical miles from Galle.

The debate took a darker turn when SJB MP Mujibur Rahman dropped a bombshell regarding the timing of the attack. Rahman alleged that the IRIS Dena had signalled for permission to enter Sri Lankan waters 11 hours before it was struck by U.S. torpedoes.

“Why did the authorities keep silent?” Rahman demanded. He blasted the government for failing to act on humanitarian grounds, suggesting that Colombo’s hesitation provided the necessary window for what U.S. Defense Secretary Pete Hegseth termed a ‘Quiet Death.’ Rahman’s critique painted a picture of a government ensnared in superpower machinations, unable to uphold the principles of the Indian Ocean as a ‘Zone of Peace.’

Responding to the barrage of questions, Cabinet Spokesman Dr. Nalinda Jayatissa confirmed a chilling new development: a second Iranian vessel is currently positioned in the Exclusive Economic Zone (EEZ) off Colombo.

While Jayatissa assured the House that the President and the Security Council are ‘fully aware’ and making ‘necessary interventions’ to protect those on board, the lack of specific details fueled further anxiety. Political analysts suggest that the government’s failure to announce a clear, proactive neutral policy has left it in a state of ‘vacillation,’ unable to decide whether to grant refuge to the second ship or risk another tragedy on its doorstep.

The parliamentary clash was punctuated by the visit of former president Ranil Wickremesinghe to the Iranian Embassy yesterday to offer condolences for the passing of Supreme Leader Ayatollah Ali Khamenei. Wickremesinghe had warned on March 2 – just 48 hours before the sinking – that the current ‘leadership eviction’ methodology in the Middle East could destabilise the Indian Ocean.

As the death toll from the IRIS Dena stands at 87 with 60 still missing, the ‘can of worms’ opened in parliament reveals a nation at a crossroads. The government’s silence during the Dena’s final hours and its current ‘intervention’ with the second vessel will likely define Sri Lanka’s standing in a rapidly fragmenting global order.

As the House adjourned, one question remained hanging in the air: In the face of a superpower conflict, does Sri Lanka have the ‘backbone’ to be truly neutral, or is it merely a spectator to its own maritime destiny?

by Sanath Nanayakkare

Continue Reading

Trending