Beautiful Virgin Islands

Tuesday, Jun 03, 2025

Sri Lanka urges farmers to plant more rice amid crisis

Sri Lanka urges farmers to plant more rice amid crisis

Sri Lanka is calling on farmers to grow more rice as it faces its worst economic crisis in more than 70 years.
The country's agriculture minister made the appeal as he said the country's "food situation is becoming worse".

It comes as severe shortages of essentials, including food, helped to push inflation, the rate at which prices rise, to a new record high.

Also on Tuesday, the government raised taxes to help pay for critical purchases, including fuel and food.

The island nation of 22 million people has been hit hard by the pandemic, rising energy prices, and populist tax cuts.

A chronic shortage of foreign currency and soaring inflation has also led to a shortage of medicines, fuel and other essentials.

Agriculture Minister Mahinda Amaraweera told journalists "it is clear the food situation is becoming worse".

"We request all farmers to step into their fields in the next five to ten days and cultivate paddy [rice]," he added.

Sri Lankan officials have been looking for ways to boost food production, as Prime Minister Ranil Wickremesinghe has warned of severe food shortages by August.

The country is also applying for assistance from a South Asian food bank, which has supplied rice and other goods to countries in need, the Financial Times newspaper reported.

Food commissioner J Krishnamoorthy told the newspaper in an interview that her department had "just started the process" of asking the South Asian Association for Regional Cooperation (SAARC) for "food bank assistance".

Krishnamoorthy added that Sri Lanka was seeking around 100,000 metric tonnes of food in the form of donations or subsidised sales.

The SAARC is a grouping of eight countries in South Asia. It includes Sri Lanka and India, which is emerging as one of Sri Lanka's biggest providers of aid.

Sri Lanka's Food Commissioners Department and the SAARC did not immediately respond to BBC requests for comment.

On Tuesday, the Sri Lankan government announced an immediate increase to value added tax (VAT) from 8% to 12%. The move is expected to boost government revenue by 65bn Sri Lankan rupees ($179.9m; £142.7m).

It also said corporate tax would rise in October from 24% to 30%.

Earlier this year, then-Sri Lankan financial minister Ali Sabry told the BBC that he saw a need to raise VAT.

He added that the nation needed $4bn (£3.2bn) over the next eight months to pay for imports of daily essentials.

Also on Tuesday, official figures showed that Sri Lanka's rate of inflation rose to a record 39.1% in May, from a year ago. It had reached a previous high of 29.8% in April.

Inflation reduces the purchasing power of money since more money is now needed to buy the same items.

High rates of inflation mean that unless income increases at the same rate, people are worse off. This may cause them to spend less as they make fewer purchases from businesses.

Last month, Sri Lanka defaulted on its debt for the first time in history, when grace period to come up with $78m of unpaid debt interest payments expired.

Defaults happen when governments are unable to meet some or all of their debt payments to creditors.

It can damage a country's reputation with investors, making it harder for it to borrow the money it needs on international markets, which can further harm confidence in its currency and economy.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
China Accuses US of Violating Trade Truce
Panama Port Owner Balances US-China Pressures
France Implements Nationwide Outdoor Smoking Ban to Protect Children
German Chancellor Merz Keeps Putin Guessing on Missile Strategy
Mandelson Criticizes UK's 'Fetish' for Abandoning EU Regulations
British Fishing Boat Owner Fined €30,000 by French Authorities
Dutch government falls as far-right leader Wilders quits coalition
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
×