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)
Privacy challenges in the rollout of digital ID scheme also come into focus
By Sanath Nanayakkare
Key officials of the United Nations Development Programme (UNDP) and Asian Development Bank taking part in the Sri Lanka Digital Public Infrastructure (DPI) Summit in Colombo said yesterday that they would support Sri Lanka to become a digital economy powerhouse in the region.
The Ministry of Digital Economy had put together this two-day summit in partnership with the UNDP in Sri Lanka, the ADB and key collaborators including Huawei.
The Summit’s first session underscored the critical role of DPI as an enabler in building the country’s digital economy with universal DPI safeguards embedded to ensure safety and inclusion.
With transparency, safety and inclusion prioritized, the Summit 2025 brought together global leaders, key experts, innovators, and stakeholders from diverse sectors for dialogue and action on existing challenges and opportunities around DPI to accelerate economic growth and progress on the Sustainable Development Goals.
Key participants in the opening session included: Eranga Weeraratne, Deputy Minister of Digital Economy; Dr. Hans Wijayasuriya, Chief Advisor to the President on Digital Economy; Antonio Zaballos, Director, Digital Sector Office, ADB; Azusa Kubota, Resident Representative, UNDP Sri Lanka; Srikanth Nadhamuni, Founder CTO, Aadhaar; Keyzom Ngodup Massally, Head of Digital & AI Programmes, UNDP Chief Digital Office; and other high-level representations from the public and private sectors.
Eranga Weeraratne, Deputy Minister of Digital Economy stated that the government envisions Sri Lanka’s digital economy to reach $15 billion by 2030.
The eminent speakers emphasized the importance of public-private partnerships and cross-sector collaboration in successfully designing and implementing DPI at population-scale, particularly with the necessary safeguards to anticipate and mitigate risks.
Dr. Hans Wijayasuriya, Chief Advisor to the President on Digital Economy said, “The primacy given to Digital Economy Acceleration by the Government of Sri Lanka is exemplified by the creation of the Digital Economy Ministry under the direct purview of His Excellency the President. The Ministry is committed to building a robust digital economy that benefits all citizens. Our goal is to use digital transformation to accelerate economic growth, achieve leapfrog elevation of Citizen and Business Services and eliminate asymmetries across the socio-economic pyramid. The establishment, and accelerated adoption of DPIs is a foundational pillar of this strategy. We are confident that the DPI summit will bring together the effort and commitment of likeminded stakeholders to support the achievement of Sri Lanka’s Digital Economy ambitions.”
Dr. Hans said on a lighter note that when he was in the telco industry , his main focus was ‘customer experience’ and now in his new capacity , his focus would be on ‘citizen experience’.
Takafumi Kadono, ADB Country Director for Sri Lanka commented, “Digital Public Infrastructure is an essential enabler of Digital Transformation. As our economies and societies digitalize, Government is called upon to provide the high-speed digital rails and competencies that this requires. We at ADB look forward to supporting Sri Lanka’s ambitions to become a Digital Economy Powerhouse.”
The ‘Transforming Local Administrative Data Collection Systems for SDG Acceleration in Sri Lanka’ project was highlighted during the event. Led by the Government of Sri Lanka, implemented by UNDP Sri Lanka and the World Health Organization (WHO) in SriLanka, and funded by the UN Sri Lanka SDG Fund, the project demonstrates Sri Lanka’s commitment to leveraging DPI for improved service delivery, economic efficiency, and citizen empowerment as a first mover country of the 50-in-5 global campaign.
Speaking at the Summit, Azusa Kubota, Resident Representative, UNDP in Sri Lanka noted, “Digital platforms can contribute greatly to building trust between government institutions and citizens by enhancing accessibility, transparency, safety, and responsiveness of services. As part of our commitment to advancing accountable institutions for SDGs attainment, UNDP, globally and locally here in Sri Lanka, supports designing national policy frameworks, building capabilities for digital adoption, as well as introducing tangible digital solutions for improved public service delivery. As Sri Lanka spearheads digitalization, this inaugural Summit is a pivotal step in Sri Lanka’s Digital journey.”
Keyzom Ngodup Massally, Head of Digital & AI Programmes, UNDP Chief Digital Office notably spoke about the Kenyan case when it came to digitalization of its national ID programme, and gave her insights on the robust privacy framework and universal safeguards that would be critical in the whole digitalization exercise.
A landmark ruling by the High Court of Kenya in 2021, concluded that the rollout of a country-wide biometric ID scheme was illegal. Kenya’s digital identity rollout was paused for the third time by the country’s High Court in July 2024, pending the outcome of a constitutional challenge.
Business
SDC and partners to impement initiatives to bolster Sustainability Standards and Reporting of the Sri Lankan apparel and textile sector
In support of its efforts towards promoting grater participation of the private sector in Sri Lanka’s inclusive and sustainable growith trajectory aligned with the Sustainable Development Goals (SDGs), the Sustainable Development Council recently facilitated a mission from the Global Reporting Initiative (GRI) – South Asia Network with the aim of strengthening the capacities of Sri Lankan businesses in the Textile & Apparel sector on sustainability standards and certification, risk management and reporting based on the globally accepted GRI frameworks,
Sri Lanka holds a key position in the global fashion industry supply chain as an ethical sourcing destination for apparel and fashion. However, against the growing global demands for stricter policies and practices assuring higher environmental and social safeguards, Sri Lankan businesses in the apparel and textile sector will need to adopt new initiatives to improve productivity, reduce environmental impact to continue to retain its prominent and respected position in the global apparel supply chain and push into new markets which are demanding and ready to pay a premium for ethically and sustainably manufactured apparel products. According to Market Research Future (2023), the global market for sustainable textiles is expected to grow at a compound annual growth rate of 12.5% between 2022 and 2030, reaching nearly USD 69.5 billion in 2030.
GRI is an independent international organization providing standards, tools and training to organizations of all sizes to harness the skills, capabilities and data to create sustainable, long-term value and unlock positive change. GRI standards are among the world’s most widely accepted sustainability reporting framework. Headquartered in Amsterdam, Netherlands, GRI has a network of five regional networks through which it supports organizations and stakeholders worldwide.
Based on the discussions with SDC held through 2024, Sri Lanka was included in the ‘Improving Transparency for Sustainable Business (ITSB) Programme’ to be implemented by GRI in India, Bangladesh and Sri Lanka with the support of the Swedish International Development Cooperation Agency (SIDA). The Programme aims to build the capacity of businesses to meet market and regulatory requirements while improving practices in labor, economic impact and tax and sustainability reporting among others.
During the mission, extensive consultations were held with SDC and its partner agencies from government, the Ministry of Industries and the Export Development Board and industry stakeholders represented through the Joint Apparel Association Forum (JAAF), Sri Lanka Apparel Exporters Association and ESG Professionals Association to agree on priority interventions for Sri Lanka through 2025 to 2027.
Accordingly, capacity building sessions would be conducted for 100 apparel and textile sector companies in Sri Lanka based on an assessment of current capacities on materiality assessments and impact reporting during 2025. As next step, it is expected to create digital reporting platforms to integrate SMEs in the textile and apparel sector into impact reporting practices through simplified approaches.
The above interventions are expected to strengthen the ability of Sri Lankan businesses in the apparel and textile sector to create value for employees, customers, communities and the environment whilst also enhancing their ability to access new market opportunities in the fashion industry.
Sustainability, poultry modernization, feed costs optimization and animal nutrition took center stage at the U.S. Soybean Export Council (USSEC)’s signature Chickenomics event in Kathmandu, Nepal.
South Asia’s poultry industry continues to show a preference for U.S. Soy, using it as a key feed ingredient. With its high energy and protein levels, U.S. Soy consistently provides superior quality while lowering feed costs and improving profitability. This event comes at an opportune time as U.S. Soy’s prices are competitive in the global marketplace.
U.S. Soy has achieved some significant milestones in the region in recent months. Pakistan reopened trade after a two-year pause easing market access. In Nepal, key poultry producer Valley Group has signed on to use the “Fed with Sustainable U.S. Soy” label on its packaging, underscoring the value it places on sustainability. According to data from USDA, U.S. soybean imports to Bangladesh are up by 36.2% compared to last year. India also has 111,500 MMT of outstanding sales for U.S. soybean oil reflecting U.S. Soy’s growing presence in the region.
Commenting on this surge in U.S. Soy imports, Kevin Roepke, USSEC’s Regional Director for South Asia and Sub-Saharan Africa (SAASSA) added, “2025 has started strong for U.S. Soy. We are grateful for our customers across the region who recognize the potential that U.S. Soy holds in advancing the region’s food and nutrition security. We are confident that this will be a turning point in strengthening our partnerships with the industry.”
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