January 22, Colombo (LNW): The Paddy Marketing Board has announced the formation of a dedicated committee tasked with reviewing and potentially amending the certified price of rice in Sri Lanka.
According to the Board, the committee will consist of representatives from a variety of key institutions, including the Hector Kobbekaduwa Agrarian Research and Training Institute and the Institute of Post Harvest Technology.
The committee’s primary objective is to evaluate the current pricing system applied to paddy cultivation and determine whether adjustments are necessary to reflect market conditions.
After conducting this thorough review, the committee will play a key role in setting the certified prices for rice that will guide purchases of stocks for the upcoming season.
Manjula Pinnalanda, Chairman of the Paddy Marketing Board, emphasised that the goal is to ensure that the certified price of rice aligns with the realities of both the farming community and consumers.
In the previous Yala season, certified prices for various types of rice were set at Rs. 105 per kilogram for Nadu rice, Rs. 115 per kilogram for Samba rice, and Rs. 130 per kilogram for Keeri Samba rice.
In addition to the pricing review, the Board also confirmed that storage facilities for the upcoming Maha season harvest have already been prepared.
With harvest time approaching, the purchase of paddy stocks for the Maha season is set to begin next month, ensuring that the country’s rice supply chain remains stable and secure.
The adjustments made through this committee will be crucial for managing the seasonal fluctuations in supply and demand for rice, a staple food in Sri Lanka.
January 22, Colombo (LNW): Sri Lanka’s Parliament is set to resume its discussions today, with the second day of the adjournment debate on the government’s Clean Sri Lanka initiative taking centre stage.
Under the guidance of Speaker Dr. Jagath Wickramaratne, the House will continue its deliberations, aiming to address critical matters concerning the country’s environmental and developmental goals.
The Parliament is scheduled to sit through until Friday, with each day dedicated to a range of important legislative discussions.
Tomorrow, attention will shift to the examination of several key pieces of legislation, including regulations under the Import and Export Control Act, proposed amendments to the Customs Ordinance, and updates to the Ports and Airports Development Levy Act.
These discussions are expected to be pivotal in shaping the country’s trade and infrastructure policies.
Friday’s session will be focused on a more sombre occasion, as the Parliament dedicates the entire day to tabling condolence motions for former Members of Parliament who have passed away.
January 22, Colombo (LNW): Dr. Hansaka Wijemuni, Deputy Minister of Health and Media, has announced that the prices of medicines in Sri Lanka have been significantly reduced due to the introduction of greater competition among pharmaceutical suppliers.
Speaking recently, Dr. Wijemuni explained that in the past, certain medications were only available from a single supplier, which led to monopolistic practices and inflated prices.
This reliance on a limited number of suppliers meant that the government had little leverage to negotiate lower prices, resulting in the purchase of medicines at much higher costs.
In response to this issue, the Ministry has expedited the process of registering new suppliers for medicines that were previously only sourced from one provider.
Dr. Wijemuni revealed that around 2,800 pharmaceutical companies had applied for registration, and their documentation is being reviewed swiftly. He assured that all qualified suppliers will be fully registered before March this year.
The Deputy Minister highlighted that by diversifying the pool of suppliers, the government can foster a competitive environment that will help drive down the cost of medicines, ultimately benefiting consumers.
This move is part of a broader effort to enhance the accessibility and affordability of essential medicines across the island.
Dr. Wijemuni also pointed out that the government’s commitment to ensuring quality standards will not be compromised during this process.
Each supplier will undergo a rigorous qualification check before being approved, guaranteeing that only those who meet the necessary criteria will be allowed to enter the market.
By broadening the supplier base, the Ministry hopes to create a more competitive pharmaceutical market, resulting in better prices and more choices for the public.
January 22, Colombo (LNW): Sri Lankan President Anura Kumara Dissanayake has announced that military personnel will be deployed to monitor and ensure compliance in rice mills that fail to adhere to government regulations.
This statement was made during a special television programme broadcast on the evening of January 21.
The President expressed serious concerns over the operations of certain large-scale rice mills, emphasising that if these mills do not follow the government’s directives, the military will be tasked with overseeing the transportation of rice from the mills to the designated storage facilities.
President Dissanayake highlighted the importance of rice as a crucial national resource, reiterating that the government has been keen to regulate the sector in a fair and transparent manner.
“Rice is a national asset, and it is vital that it is handled in a way that serves the best interests of the people,” he remarked. “We have taken every measure to ensure that the policies being implemented are just and reasonable, without any form of unfair regulation.“
The President’s remarks come amid growing concerns over rice shortages and price fluctuations in the country, and the government has been taking steps to streamline the supply chain to ensure that rice reaches local markets in a timely and equitable manner.
The deployment of military personnel to oversee rice mill operations reflects the government’s commitment to maintaining order and safeguarding the nation’s food security.
With rice being a staple food and a critical commodity in Sri Lanka, the government is determined to prevent any disruptions in the supply and to maintain control over the distribution process.
January 22, Colombo (LNW): The Ceylon Chamber of Coconut Industries (CCCI), the leading body representing Sri Lanka’s vital coconut sector, has called on the government to urgently approve a proposal to import 200 million coconuts.
This move, the Chamber warns, is critical to preventing an imminent crisis that threatens both domestic consumers and the country’s export industry.
Speaking at an emergency press conference held in Colombo yesterday, CCCI President Jayantha Samarakoon expressed deep concern over the ongoing shortage, which is causing coconut prices to soar to alarming levels, with the cost of a single nut approaching Rs. 200.
The shortage is also severely impacting Sri Lanka’s coconut exports, an important source of revenue for the island nation.
Samarakoon pointed out that the lengthy approval process for the importation of coconuts, which involves several government ministries and departments, has been moving at a frustratingly slow pace.
He emphasised that the lack of swift government intervention is exacerbating the supply chain crisis and leaving little time to avert further disruption.
“This shortage is creating a dual crisis – one that directly affects households struggling with rising prices and another that threatens the livelihoods of thousands of people in the export sector,” Samarakoon said. “Immediate action is needed to secure the importation of coconuts and stabilise the market before the situation becomes even more dire.“
The CCCI’s appeal highlights the urgent need for coordinated action at the highest levels of government to safeguard both local consumers and the country’s valuable coconut export trade.
With coconut-based products being a staple in Sri Lankan diets and a key export commodity, the consequences of inaction could be far-reaching, affecting both the economy and the daily lives of many Sri Lankans.
Industry experts have warned that if the importation process continues to be delayed, the shortage could worsen, further inflating prices and potentially leading to supply shortages across the island.
The Chamber has urged the government to prioritise this issue and take immediate steps to ensure the coconut industry remains stable in both the short and long term.
January 22, Colombo (LNW): Martin Raiser, the Vice President for the South Asia Region of the World Bank, recently met with Sri Lanka’s Prime Minister, Dr. Harini Amarasuriya, in a cordial meeting at the Sri Lankan Parliament to discuss the country’s pressing development priorities.
The two leaders explored a range of critical issues that are central to Sri Lanka’s future growth, with particular focus on education, gender equality, and regional inclusivity.
The talks highlighted the necessity of addressing the country’s current challenges and advancing sustainable solutions. A key topic was the enhancement of the education sector, with both Raiser and Dr. Amarasuriya underscoring the importance of improving access to quality education across the country.
There was a specific emphasis on the Technical and Vocational Education and Training (TVET) sector, which the Prime Minister’s office noted as a crucial element in creating diverse and viable career options for young people.
The leaders agreed that integrating TVET more effectively with mainstream education systems would provide students with the skills needed to thrive in a rapidly changing job market.
Gender equality also emerged as a central theme of the discussions. Both parties acknowledged the significant barriers women still face in entering the workforce and the broader economic sphere.
They agreed that targeted policy reforms and support systems are essential to ensuring greater female participation in economic activities and achieving gender equity in the workforce.
In addition to these vital topics, the dialogue reaffirmed the strong commitment of Sri Lanka and the World Bank to work together on sustainable development initiatives.
Both sides expressed a shared dedication to fostering long-term solutions that promote education, economic inclusion, and balanced regional development across Sri Lanka.
The meeting was attended by several senior officials from both the World Bank and the Sri Lankan government. David Sislen, the Regional Country Director for Nepal, Maldives, and Sri Lanka, was present alongside other key figures, including Pradeep Saputhanthri, Secretary to the Prime Minister; Sagarika Bogahawatta, Additional Secretary to the Prime Minister; Samantha Bandara, Director General of the Department of External Resources; Dharshana M. Perera, Senior Director-General for Economic Affairs (Bilateral) at the Ministry of Foreign Affairs; and Lashinka Dammullage, Director of the Southeast Asia & Central Asia Division at the Ministry of Foreign Affairs.
January 22, Colombo (LNW): Showers will occur at times in Eastern, Northern, North-central, Central and Uva provinces and in Hambantota district, and showers or thundershowers will occur at several places elsewhere in the evening or night, the Department of Meteorology said in its daily weather forecast today (22).
Fairly heavy showers about 75 mm can be expected at some places in Eastern, North-central, Uva and North western provinces.
Showers may occur in Western province and in Galle and Matara districts in the morning too.
Fairly strong winds of (30-40) kmph can be expected at times over Eastern slope of the central hills and Northern, North-central, Eastern and North-western provinces and in Hambantota and Monaragala districts.
The general public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.
Marine Weather:
Condition of Rain:
Showers or thundershowers will occur at times in the sea areas extending from Kankasanthurai to Galle via Trincomalee, Pottuvil and Hambantota. Showers or thundershowers will occur at a few places in the other sea areas around the island during the afternoon or Night.
Winds:
Winds will be north-easterly and speed will be (30-40) kmph. Wind speed can increase up to 50 kmph at times in the sea areas off the coast extending from Colombo to Kankasanthurai via Puttalam and Mannar and from Matara to Pottuvil via Hambantota.
State of Sea:
The sea areas off the coasts extending from Colombo to Kankasanthurai via Puttalam and Mannar and from Matara to Pottuvil via Hambantota will be fairly rough at times. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.
January 21, Colombo (LNW): The recent salt shortage in Sri Lanka, exacerbated by adverse weather conditions during the Maha season, has led the Cabinet to approve the import of 30,000 metric tons (MT) of non-iodised salt as an urgent measure.
This decision, announced on December 18, 2024, aims to stabilize market supply and prevent a severe salt deficit in the first quarter of 2025, but it has sparked public debate and criticism.
Import Measures to Address Shortage
The Sri Lanka State Trading Corporation confirmed that 15,000 MT of salt ordered from India would arrive next week, with a total of 30,000 MT to be imported by January 31, 2025.
Two importers have been authorized for this initiative. While the country is nearly self-sufficient in salt production, producing 180,000 MT annually to meet domestic and industrial demand, the industry is heavily reliant on solar evaporation—a process highly sensitive to weather conditions.
Weather Disruptions Impacting Production
The Puttalam area, a major production hub contributing 45% of the national salt supply, faced severe disruptions due to heavy rains and typhoons during the last monsoon season. This area, spanning 4,000 hectares of salterns, employs around 20,000 families and plays a critical role in Sri Lanka’s salt production.
However, recent adverse weather left parts of the region submerged, jeopardizing salt harvesting and infrastructure.Sri Lanka’s saltern industry, concentrated in coastal regions such as Hambantota, Trincomalee, and Mannar, depends on prolonged dry periods of 40–45 days for efficient solar evaporation.
The increased frequency of erratic rainfall and extreme weather events, linked to global climate change, poses a significant challenge to maintaining consistent production.
Industry Overview and Challenges
Sri Lanka’s salt sector, comprising government and private players, has evolved from colonial-era practices to a modern, well-organized industry. Notable innovations include the production of high-purity vacuum-dried (PVD) salt and exports of specialty products like “Singithi Lunu,” a crystal-clear salt from Bundala Saltern, to markets like Japan.
Despite these advancements, the industry’s dependency on favorable climatic conditions leaves it vulnerable.The decision to allow imports highlights the urgent need to address the sector’s vulnerability to climate variability.
While importing salt to an island nation surrounded by seawater has drawn criticism, the government’s measure is intended as a temporary solution to stabilize supply and prevent economic losses.
Call for Long-Term Solutions
Looking ahead, sustainable strategies are crucial to safeguarding Sri Lanka’s saltern industry against the growing impact of climate change. Stakeholders, including policymakers, industrialists, and academics, must collaborate to enhance the sector’s resilience.
Potential solutions could include diversifying salt production methods, improving saltern infrastructure to withstand flooding, and investing in climate-resilient technologies.
As part of broader efforts, the government must also address the systemic challenges posed by unpredictable weather patterns, which threaten the livelihoods of tens of thousands of families and the stability of salt-dependent markets.
While imports provide a temporary fix, a long-term, multidisciplinary approach is essential to ensure the industry’s sustainability in an era of increasing climate uncertainty.
Conclusion
The government’s decision to import 30,000 MT of non-iodised salt underscores the critical impact of climate change on Sri Lanka’s salt industry. While this measure ensures short-term stability, it also serves as a wake-up call for a comprehensive strategy to protect and strengthen the sector.
This crisis presents an opportunity to reimagine the future of Sri Lanka’s saltern industry, making it more resilient, innovative, and sustainable.
January 21, Colombo (LNW): Sri Lanka’s tea production hit a three-year high in 2024, bouncing back from detrimental policy decisions in 2021 and the lingering impacts of climate change.
The cumulative tea crop for the year reached 262.15 million kilos, marking an increase of 6.07 million kilos or 2.4% year-on-year (YoY) growth compared to 256.08 million kilos in 2023.
Data analysed by Asia Siyaka Commodities showed all tea-growing elevations posted positive variances in 2024, with the exception of the high-grown sector due to excessive rainfall during the second quarter which contributed to a decline in output in the region.
“Production gains came primarily from the medium-grown elevation, by a sharp 12.5% YoY increase to 47.62 million kilos, while low-grown tea, which accounts for the majority of the production, saw a modest 2.4% rise, reaching 158.81 million kilos.
The high-grown region produced 55.72 million kilos, a 5% YoY decrease, reflecting its vulnerability to climatic conditions,” it added.Despite the improvement, 2024’s total production fell short of the 299.49 million kilos achieved in 2021, registering a drop of 37.34 million kilos.
Asia Siyaka said December 2024 contributed 21.71 million kilos to the annual total, a 9.6% YoY increase compared to 19.08 million kilos in December 2023.
All elevations performed better in December 2024 relative to the same period a year ago. High-grown tea edged up by 0.4% YoY to 4.60 million kilos, medium-grown tea surged by 26.6% YoY to 3.75 million kilos, and low-grown tea production increased by 9% YoY to 13.35 million kilos.
The December 2024 output also shows a 1.19 million kilo increase compared to 20.52 million kilos registered in December 2021.
Tea production categories also painted a largely positive picture in 2024. Orthodox tea, the dominant category, registered a 2.2% YoY increase, totalling 236 million kilos, whilst CTC tea saw a 4.7% YoY rise to 23.68 million kilos. However, green tea lagged slightly, falling 1% YoY to 2.26 million kilos.
In December 2024, tea production categories showed broad-based gains, with orthodox tea rising 10.1% YoY to 19.59 million kilos, CTC tea increasing by 5% YoY to 1.93 million kilos, and green tea climbing 5.3% YoY to 190,307 kilos.
It was noted that these production improvements were achieved despite irregular weather patterns and modest fertiliser usage by smallholders, who contribute nearly 75% of the national tea crop.
Asia Siyaka believes if the growing conditions remain stable, production could exceed 275 million kilos in 2025.
January 21, Colombo (LNW): Sri Lanka has taken a significant step towards sustainable development with the introduction of green bonds, marking its commitment to addressing climate change and fostering renewable energy initiatives.
This pioneering move aims to attract global investors to finance environmentally friendly projects while aligning with the nation’s ambitious target of generating 70% of its electricity from renewable sources by 2030.
A noteworthy example of this effort is DFCC Bank’s historic Green Bond, which has achieved dual listing on the Luxembourg Stock Exchange (LuxSE) and the renowned Luxembourg Green Exchange (LGX).
DFCC Bank’s Green Bond, initially issued and listed on the Colombo Stock Exchange (CSE) in September 2024, holds the distinction of being Sri Lanka’s first-ever Green Bond. Raising Rs. 2.5 billion (approximately EUR 8 million), this innovative financial instrument is dedicated to funding solar energy projects, underscoring the bank’s commitment to promoting renewable energy and catalyzing private investment in green finance.
The dual listing on LuxSE is a milestone for DFCC Bank, strengthening its leadership in sustainable finance. DFCC Bank CEO Thimal Perera highlighted that this achievement reflects the bank’s dedication to creating lasting positive change for the nation through renewable energy and climate action.
By facilitating access to international capital markets, the bank not only amplifies its impact but also supports Sri Lankan enterprises in establishing robust ESG frameworks.
DFCC Bank’s pioneering efforts in renewable energy finance are well-established. The bank financed Sri Lanka’s first private sector mini-hydro power project and co-financed groundbreaking ventures such as the country’s first grid-scale wind, solar, and waste-to-energy projects.
Additionally, DFCC Bank serves as Sri Lanka’s sole Direct Access Entity of the Green Climate Fund, further cementing its role in driving climate action and fostering long-term resilience.
LuxSE Head of Sustainable Finance Laetitia Hamon expressed delight at welcoming DFCC Bank’s inaugural Green Bond, emphasizing its significance in international cooperation and sustainable development.
The dual listing aligns with the bank’s vision to diversify Sri Lanka’s financial markets while promoting innovative financial solutions that contribute to environmental and social goals.
Building on this success, DFCC Bank plans to expand its Green Bond Framework into a Sustainable Bond Framework, broadening its impact to encompass social projects alongside environmental initiatives.
This transformative step sets a benchmark for Sri Lanka’s financial sector, showcasing the potential of its financial instruments to attract global attention and drive sustainable development.
DFCC Bank’s Green Bond initiative not only highlights the nation’s commitment to sustainability but also paves the way for other emerging markets to follow suit, reinforcing the importance of innovative financing in addressing global climate challenges.
