Business
‘Government temporarily takes one step forward after many backward steps on agriculture’
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
Business
Committee to look at unified tripartite management of workers’ retirement funds
The government has initiated what could become one of the most significant reforms of Sri Lanka’s social security system in decades by appointing a Senior Officials’ Committee to examine the feasibility of bringing the Employees’ Provident Fund (EPF) and the Employees’ Trust Fund (ETF) under a unified tripartite governance framework representing the government, employers and employees.
Cabinet approval was granted following a proposal submitted by the Minister of Labour. According to Cabinet Spokesman and Minister Dr. Nalinda Jayatissa, the committee has been mandated to study whether the two institutions could operate under a common governance structure based on internationally recognised principles promoted by the International Labour Organization (ILO).
He stressed that the committee has been appointed only to examine the feasibility of the proposal, and no final decision has been taken to merge the two funds.
The official Cabinet statement notes that the EPF, established under the Employees’ Provident Fund Act No. 15 of 1958, has more than 2.5 million members and assets exceeding Rs. 4.9 trillion, making it Sri Lanka’s largest social security fund.
Custody of the fund, investment management, financial administration and payment of benefits are currently handled by the Central Bank of Sri Lanka, while the Department of Labour is responsible for member registration, employer compliance, recovery of arrears and safeguarding employee rights.
The ETF, created under Act No. 46 of 1980, is administered by a tripartite board comprising representatives of the government, employers and employees. It manages assets of approximately Rs. 637 billion and provides coverage to more than 2.5 million active members.
The Cabinet paper highlights that tripartite governance of social security institutions is an internationally recognised best practice and a fundamental principle promoted by the ILO, which forms the basis for examining a common governance model for both funds.
The proposal is expected to attract close scrutiny from the business community, trade unions and financial market participants, given that the combined assets of the EPF and ETF exceed Rs. 5.5 trillion, making them among the country’s largest institutional investors.
Economists note that any governance reforms should strengthen transparency, accountability, professional investment management and public confidence while safeguarding workers’ retirement savings.
By Ifham Nizam
Business
LOLC strengthens Pakistan operations with new Islamabad head office
LOLC Microfinance Bank Pakistan, a fully owned subsidiary of the LOLC Group, has strategically relocated its Head Office to Gulberg Greens, Islamabad, marking a significant milestone in its growth journey. As one of the LOLC Group’s largest overseas operations in Asia, the Bank continues to advance financial inclusion and sustainable economic development across Pakistan.
The new Head Office was formally inaugurated in the presence of Chief Guests H.E. Admiral Fred Seneviratne (Retd.), High Commissioner of Sri Lanka to Pakistan, and Mr. Krishan Thilakaratne, Chairman of LOLC Microfinance Bank Pakistan. The ceremony was attended by the Bank’s Board of Directors, senior management and employees, commemorating another important chapter in the Bank’s continued expansion.
LOLC Microfinance Bank Pakistan is a fully-fledged Microfinance Bank regulated by the State Bank of Pakistan, operating through a network of 88 branches and employing over 1,200 staff members across the key cities of Karachi, Lahore, Hyderabad, Faisalabad, Sialkot, Islamabad, Peshawar and Gilgit. The Bank offers a comprehensive range of financial solutions, including business loans, microfinance, vehicle financing, gold loans and other financial products. It currently manages a loan portfolio exceeding USD 70 million and a deposit portfolio exceeding USD 90 million, comprising savings deposits, term deposits and current accounts.
The relocation to the new Head Office reflects the Bank’s expanding operations and its commitment to widening access to responsible financial services for individuals, micro-entrepreneurs and small businesses across Pakistan. In 2026, LOLC Microfinance Bank Pakistan was recognised as Pakistan’s fastest growing Microfinance Bank, highlighting its strong business momentum and growing market presence.
Addressing the gathering, H.E. Admiral Fred Seneviratne (Retd.), High Commissioner of Sri Lanka to Pakistan, stated, “The relationship between Sri Lanka and Pakistan continues to grow through meaningful partnerships such as this. LOLC Microfinance Bank Pakistan is making an important contribution by supporting entrepreneurs, strengthening the SME sector, and expanding financial access where it is needed the most. Institutions like these play a vital role in empowering communities and supporting sustainable economic growth.”(LOLC)
Business
CDB retains championship crown at MCA T10
Citizens Development Business Finance PLC (CDB) lit up the CCC Grounds on June 28th, retaining the championship of the MCA T10 Cricket Tournament, further etching its record of being unbeaten and showcasing its signature persona of being determined and unstoppable.
Sealing the title without a single loss in the tournament from the first ball to the final cheer, Team CDB skippered by Tharindu Rathnayaka with Vice Captain Dunith Wellalage, both national players, showcased the calibre of a champion side.
Coached by national player Oshadha Fernando, CDB combined star power with relentless team spirit – the perfect combination of experience and youthful energy. CDB’s performance was not just about individual brilliance but about a collective drive that mirrors CDB’s corporate ethos of perseverance, leadership, and excellence.
The final match against the Abans Group was a fitting climax. Chasing 116, CDB powered to 120/4 in just 8.4 overs, sealing victory by six wickets. Vishad Randika rose to the occasion as Player of the Final. Nuwan Thushara’s consistent bowling prowess, including a hat trick — 2 overs, 11 runs, 4 wickets during the semi-finals — earned him the Best Bowler accolade.
This unbeaten run was more than a cricketing triumph. It was a statement by CDB of its dedication to excellence, which extends beyond financial services into fostering a high-performance culture through sports. The championship reinforced the company’s reputation as a leader in the financial sector while celebrating employee engagement, wellness, and community spirit.
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