For centuries, rice cultivation has been at the heart of Sri Lankan agriculture, covering over a million hectares annually and accounting for 37% of the country’s land use. 

However, climate change has intensified the challenges of managing water resources, particularly for water-intensive paddy farming. 

The Climate Resilient Integrated Water Management Project (CRIWMP), supported by the Green Climate Fund and implemented by the Sri Lankan government with the UNDP, is addressing this issue through an innovative technique known as Alternate Wetting and Drying (AWD).

A Blend of Tradition and Innovation

Traditionally, Sri Lankan paddy fields relied on continuous flooding, requiring approximately 2,500 liters of water to produce 1 kilogram of rice. This method placed immense pressure on water resources, especially during droughts. 

AWD, a sustainable alternative, has reduced water usage by up to 27% while increasing cropping intensity from 1.2 to 2.1. This enables farmers to cultivate more frequently, enhancing harvests, income, and food security.

Empowering Farmers through Knowledge

The success of AWD lies in its integration of technology and farmer empowerment. CRIWMP collaborates with farming communities to provide training, tools, and climate advisory services to implement AWD effectively. 

Farmers use simple tools like buried water pipes to monitor water levels and irrigate only when necessary, conserving water and optimizing irrigation schedules with agro-meteorological advisories.

Technological Innovations in Water Management

The AWD method has been further strengthened by advanced technologies such as the Sensor Light System and the Water Level Arrow Marking System. The solar-powered Sensor Light System alerts farmers to irrigate when water levels are critically low, while the Water Level Arrow Marking System visually indicates water levels, reducing the need for field inspections. These innovations have empowered farmers like Wasantha, who now consider themselves “smart” farmers, to confidently manage water resources.

A Sustainable Shift in Paddy Cultivation

CRIWMP’s Climate Smart Agriculture Coordinator, Dr. Geethika Wijesundara, describes AWD as a transformative step for sustainable water management. By adopting AWD, farmers can cultivate paddy using just 2.9 to 3 acre-feet of water, freeing up resources to grow other field crops during a third season. This diversification boosts yields, income, and food security.

Environmental and Climate Benefits

Beyond improving water efficiency and productivity, AWD has significantly reduced methane emissions—a key contributor to global warming. In fields using AWD, methane emissions have decreased by 40%, from 570 mg/ha to 325 mg/ha. Nationwide adoption of AWD could reduce Sri Lanka’s methane emissions by 245,000 tons annually.

A Vision for the Future

Looking ahead, CRIWMP plans to conduct soil drainage mapping in two irrigation systems to optimize crop planning for the Yala season. This approach ensures paddy cultivation aligns with water availability while promoting high-value crops to enhance smallholder resilience and profitability.

Sri Lanka’s journey towards climate-resilient agriculture demonstrates the power of blending traditional farming practices with modern innovations. Through AWD and other water management advancements, Sri Lankan farmers are not only growing rice but also cultivating hope, sustainability, and resilience for future generations.

Tobe publishe don Thursday19 

“Yukthi Calls for Economic Justice rejecting Debt and Unsustainable Policies”

Yukthi, a collective supporting Sri Lanka’s working-class movements and struggles for democracy and justice, has issued a strong appeal for sustainable economic policies that prioritize the well-being of the people.

The forum vehemently opposes a return to high-interest international capital markets, citing the significant burden these have already imposed on the nation.

On December 13, 2024, the Ministry of Finance announced the completion of a controversial debt restructuring agreement related to Sri Lanka’s international sovereign bonds. 

This deal, finalized during a politically sensitive blackout period two days before the presidential election on September 21, 2024, has drawn widespread criticism for its long-term economic repercussions. 

Yukthi warns that the agreement, which relies on Macro-Linked Bonds (MLBs) tied to Sri Lanka’s dollar-denominated GDP, will cost the country billions of dollars while failing to provide any substantial debt relief.

 Under the terms of the deal, Sri Lanka’s debt repayment obligations are linked to the anticipated rise in its dollar GDP between 2025 and 2027.

However, this projection assumes a temporary appreciation of the Sri Lankan rupee under the ongoing IMF program, which delays significant repayments to bilateral and commercial creditors. An appreciated rupee, while boosting dollar GDP, could hurt foreign earnings necessary for external debt servicing.

The arrangement has severe implications for public finances. External debt servicing is projected at 4.5% of GDP, with repayments consuming 30% of government revenue. This leaves minimal fiscal space for public spending, forcing working people to shoulder the economic burden while bondholders profit.

Sri Lanka’s economy experienced a notable 5.5% year-on-year (YoY) growth in the third quarter of 2024, marking the highest expansion since 2021. This growth continued the upward trend that began in September 2023 and outpaced the 4.7% growth recorded in the second quarter of the year.

The Department of Census and Statistics (DCS) attributed this positive performance primarily to the industrial sector, which contributed 27.3% to the GDP and grew by an impressive 10.8%. 

The service sector, accounting for 55.5% of GDP, expanded by 2.6%, while agriculture, which makes up 8.2% of the GDP, grew by 3%. Additionally, taxes on products (after subsidies), contributing 8.9% to the GDP, increased by 13.3% in Q3 2024.

Several factors played a role in driving this growth. A sharp decline in interest rates toward the end of the third quarter helped ease domestic credit supply, particularly benefiting the private sector. Additionally, a significant increase in exports and imports boosted economic activities, fostering strong forward and backward linkages.

 Notably, imports of investment goods and intermediate goods, such as textiles and cement, fueled the growth of key industries like apparel and construction.

Tourism and workers’ remittances also contributed positively to Sri Lanka’s foreign currency reserves, strengthening the value of the rupee in the foreign exchange market. 

On the domestic front, improved water levels in reservoirs led to higher hydroelectric power generation, while increased egg and poultry production supported animal agriculture, contributing to the overall growth.

Sectoral Performance

Agriculture

Agriculture recorded a 3% growth in Q3 2024, a slight slowdown from the 4.2% growth in the same period of 2023. Key contributors to this growth included significant expansions in cereal production (46.7%), animal production (19.9%), and tea growing (16.3%). Other areas such as marine fishing, fruit cultivation, and spice growing also saw positive growth. However, some agricultural sectors, including freshwater fishing, rubber cultivation, and forestry, reported contractions.

Industry

The industrial sector as a whole grew by 10.8% in Q3 2024, a sharp turnaround from the 0.7% decline in the same quarter the previous year. The construction and mining sectors showed particularly strong growth, with increases of 23.8% and 25.4%, respectively. Manufacturing expanded by 5.3%, with notable growth in textiles, paper products, wood products, and rubber. However, the manufacturing of coke and refined petroleum products contracted by 52.3%, and the production of non-metallic minerals decreased by 3%.

Services

The service sector collectively grew by 2.6%, recovering from a contraction of 1.7% in Q3 2023. Key growth drivers included the accommodation and food services sector (18.8%), IT programming and consultancy (16%), and the insurance and pension funding sector (8.2%). Other services such as postal services, telecommunications, and real estate also saw positive growth. The only sector to decline was public administration and defense, which contracted by 1.8%.

Overall, Sri Lanka’s economic performance in Q3 2024 reflects strong growth across various sectors, indicating a resilient recovery and promising prospects for the remainder of the year.

Yukthi, a collective supporting Sri Lanka’s working-class movements and struggles for democracy and justice, has issued a strong appeal for sustainable economic policies that prioritize the well-being of the people.

The forum vehemently opposes a return to high-interest international capital markets, citing the significant burden these have already imposed on the nation.

On December 13, 2024, the Ministry of Finance announced the completion of a controversial debt restructuring agreement related to Sri Lanka’s international sovereign bonds. 

This deal, finalized during a politically sensitive blackout period two days before the presidential election on September 21, 2024, has drawn widespread criticism for its long-term economic repercussions. 

Yukthi warns that the agreement, which relies on Macro-Linked Bonds (MLBs) tied to Sri Lanka’s dollar-denominated GDP, will cost the country billions of dollars while failing to provide any substantial debt relief.

Under the terms of the deal, Sri Lanka’s debt repayment obligations are linked to the anticipated rise in its dollar GDP between 2025 and 2027. 

However, this projection assumes a temporary appreciation of the Sri Lankan rupee under the ongoing IMF program, which delays significant repayments to bilateral and commercial creditors. An appreciated rupee, while boosting dollar GDP, could hurt foreign earnings necessary for external debt servicing.

The arrangement has severe implications for public finances. External debt servicing is projected at 4.5% of GDP, with repayments consuming 30% of government revenue. This leaves minimal fiscal space for public spending, forcing working people to shoulder the economic burden while bondholders profit.

The debt restructuring deal is a cornerstone of the IMF Agreement approved on March 20, 2023. This program enforces austerity measures that disproportionately affect Sri Lanka’s working class, ensuring creditor repayments at the expense of public welfare. 

Yukthi critiques the agreement’s assumption that Sri Lanka will return to international capital markets for development financing post-2027, describing this as a dangerous strategy likely to perpetuate cycles of debt.

Additionally, the IMF’s recommendation to liberalize imports could worsen Sri Lanka’s balance of payments. A renewed influx of luxury imports could deplete foreign reserves, making it difficult to secure essential goods during future economic shocks. 

Yukthi argues that such policies, driven by financialisation and external borrowings, would only extract further from working people, who already face rising costs for essentials and reduced access to public services.

Yukthi calls for a complete rejection of these unsustainable economic approaches. Instead, it advocates for policies that foster sustainable development, uplift the working class, and reduce dependence on predatory international capital markets.

 By prioritizing social welfare and essential public spending, the government can address the needs of the most vulnerable while steering Sri Lanka toward a more equitable and resilient economic future.

angThe Sri Lankan government is eager to strengthen trade relations with Bangladesh, aiming to unlock significant untapped potential between the two nations. High Commissioner of Sri Lanka to Bangladesh, Dharmapala Weerakkody, recently met with Anwar Hossain, Vice Chairman and CEO of the Export Promotion Bureau of Bangladesh (EPB), to discuss enhancing economic cooperation.

High Commissioner Weerakkody outlined the current status of trade ties, emphasizing Sri Lanka’s thriving apparel and textile sector, which contributed 32% of the country’s total export earnings in 2023. 

He noted that prominent Sri Lankan garment companies such as MAS, Brandix, Hirdaramani, and Univogue operate in Bangladesh, with many Sri Lankan professionals contributing to the Bangladeshi apparel industry. Weerakkody also invited Bangladeshi textile firms to invest in Sri Lanka’s BOI-developed Textile Zone in Eravur.

Anwar Hossain acknowledged Sri Lanka’s significant role in advancing Bangladesh’s apparel and textile industries. He highlighted the growing demand for Sri Lankan coconut-based products, such as coconut oil and spices, in the Bangladeshi market. Hossain also proposed collaboration in tourism and healthcare, while expressing interest in participating in trade fairs in Sri Lanka next year.

The meeting reaffirmed the active implementation of a 2017 Memorandum of Understanding (MoU) between the Chittagong BGMEA Institute of Fashion and Technology and the Sri Lanka Institute of Textile and Apparel. 

Both parties also explored expanding the 2011 MoU between the EPB and Sri Lanka Export Development Board. Additionally, they discussed organizing single-country product exhibitions to promote trade.

The dialogue underscores a shared commitment to strengthening economic ties, fostering mutual growth in apparel, textiles, tourism, healthcare, and trade.

Sri Lanka and Bangladesh have a friendly relationship and are working to increase trade and cooperation in several areas: 

Trade

In 2023, Sri Lanka’s exports to Bangladesh were valued at $173.87 million, and imports from Bangladesh were valued at $66.63 million. Sri Lanka’s main exports to Bangladesh include audio alarms, refined petroleum, and light rubberized knitted fabric. 

Cooperation

The two countries have agreed to sign a shipping agreement and have a joint working group to increase trade. They also have a memorandum of understanding (MoU) between the Chittagong BGMEA Institute of Fashion and Technology and the Sri Lanka Institute of Textile and Apparel. 

Loans

In 2021, Bangladesh provided Sri Lanka with a loan of at least $200 million from its foreign exchange reserves. Sri Lanka paid back $50 million of the loan in August 2023. 

Employment

Many Sri Lankans work in Bangladesh in the garment, banking, freight forwarding, information technology, telecommunication manufacturing, logistics, education, and health sectors. 

Potential

The two countries have the potential to cooperate in tourism and healthcare. The leaders of the two countries meet at international events to discuss issues of mutual interest.

 Sri Lankan Paddy Farming transforms in a Climate-Resilient Revolution

For centuries, rice cultivation has been at the heart of Sri Lankan agriculture, covering over a million hectares annually and accounting for 37% of the country’s land use. 

However, climate change has intensified the challenges of managing water resources, particularly for water-intensive paddy farming. 

The Climate Resilient Integrated Water Management Project (CRIWMP), supported by the Green Climate Fund and implemented by the Sri Lankan government with the UNDP, is addressing this issue through an innovative technique known as Alternate Wetting and Drying (AWD).

A Blend of Tradition and Innovation

Traditionally, Sri Lankan paddy fields relied on continuous flooding, requiring approximately 2,500 liters of water to produce 1 kilogram of rice. This method placed immense pressure on water resources, especially during droughts. 

AWD, a sustainable alternative, has reduced water usage by up to 27% while increasing cropping intensity from 1.2 to 2.1. This enables farmers to cultivate more frequently, enhancing harvests, income, and food security.

Empowering Farmers through Knowledge

The success of AWD lies in its integration of technology and farmer empowerment. CRIWMP collaborates with farming communities to provide training, tools, and climate advisory services to implement AWD effectively. 

Farmers use simple tools like buried water pipes to monitor water levels and irrigate only when necessary, conserving water and optimizing irrigation schedules with agro-meteorological advisories.

Technological Innovations in Water Management

The AWD method has been further strengthened by advanced technologies such as the Sensor Light System and the Water Level Arrow Marking System. The solar-powered Sensor Light System alerts farmers to irrigate when water levels are critically low, while the Water Level Arrow Marking System visually indicates water levels, reducing the need for field inspections. These innovations have empowered farmers like Wasantha, who now consider themselves “smart” farmers, to confidently manage water resources.

A Sustainable Shift in Paddy Cultivation

CRIWMP’s Climate Smart Agriculture Coordinator, Dr. Geethika Wijesundara, describes AWD as a transformative step for sustainable water management. By adopting AWD, farmers can cultivate paddy using just 2.9 to 3 acre-feet of water, freeing up resources to grow other field crops during a third season. This diversification boosts yields, income, and food security.

Environmental and Climate Benefits

Beyond improving water efficiency and productivity, AWD has significantly reduced methane emissions—a key contributor to global warming. In fields using AWD, methane emissions have decreased by 40%, from 570 mg/ha to 325 mg/ha. Nationwide adoption of AWD could reduce Sri Lanka’s methane emissions by 245,000 tons annually.

A Vision for the Future

Looking ahead, CRIWMP plans to conduct soil drainage mapping in two irrigation systems to optimize crop planning for the Yala season. This approach ensures paddy cultivation aligns with water availability while promoting high-value crops to enhance smallholder resilience and profitability.

Sri Lanka’s journey towards climate-resilient agriculture demonstrates the power of blending traditional farming practices with modern innovations. Through AWD and other water management advancements, Sri Lankan farmers are not only growing rice but also cultivating hope, sustainability, and resilience for future generations.

The All Ceylon Poultry Traders Association (ACPTA) has assured that egg prices will remain stable throughout the Christmas and New Year season, dispelling fears of potential price hikes.

ACPTA President Ajith Gunasekara stated that the current egg production levels across poultry farms nationwide are sufficient to meet market demand, ensuring no shortages during the festive period.

Gunasekara highlighted the recovery of the poultry industry following the government’s decision to halt egg imports, which had negatively impacted local farmers. Many traditional poultry farmers, who had ceased operations due to the earlier influx of imported eggs, have now resumed their activities.

“Local farms are capable of producing high-quality eggs at reasonable rates, making the previous decision to import eggs unnecessary,” Gunasekara said.

He added that the availability of poultry feed has encouraged both existing and new farmers to expand their operations. However, he urged authorities to consider further reducing feed prices to support the industry’s growth.

Sri Lanka is home to approximately 60,000 small and medium-scale poultry farmers, whose livelihoods depend on the local market. Gunasekara emphasized the importance of safeguarding these farmers and their families by avoiding imports that could destabilize the industry.

He also called on policymakers to encourage new ventures in poultry farming, citing the country’s ample resources, including land and water, as key enablers for sustainable growth.