Beautiful Virgin Islands

Tuesday, Nov 18, 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
UK Unveils Sweeping Asylum Reforms with 20-Year Settlement Wait and Conditional Status
UK Orders Twitter Hacker to Repay £4.1 Million Following 2020 High-Profile Breach
Popeyes UK Eyes Century Mark as Fried-Chicken Chain Accelerates Roll-out
Two-thirds of UK nurses report working while unwell amid staffing crisis
Britain to Reform Human-Rights Laws in Sweeping Asylum Policy Overhaul
Nearly Half of Job Losses Under Labour Government Affect UK Youth
UK Chancellor Reeves Eyes High-Value Home Levy in Budget to Raise Tens of Billions
UK Urges Poland to Choose Swedish Submarines in Multi-Billion € Defence Bid
US Border Czar Tom Homan Declares UK No Longer a ‘Friend’ Amid Intelligence Rift
UK Announces Reversal of Income Tax Hike Plans Ahead of Budget
Starmer Faces Mounting Turmoil as Leaked Briefings Ignite Leadership Plot Rumours
UK Commentator Sami Hamdi Returns Home After US Visa Revocation and Detention
UK Eyes Denmark-Style Asylum Rules in Major Migration Shift
UK Signals Intelligence Freeze Amid US Maritime Drug-Strike Campaign
TikTok Awards UK & Ireland 2025 Celebrates Top Creators Including Max Klymenko as Creator of the Year
UK Growth Nearly Stalls at 0.1% in Q3 as Cyberattack Halts Car Production
Apple Denied Permission to Appeal UK App Store Ruling, Faces Over £1bn Liability
UK Chooses Wylfa for First Small Modular Reactors, Drawing Sharp U.S. Objection
Starmer Faces Growing Labour Backlash as Briefing Sparks Authority Crisis
Reform UK Withdraws from BBC Documentary Amid Legal Storm Over Trump Speech Edit
UK Prime Minister Attempts to Reassert Authority Amid Internal Labour Leadership Drama
UK Upholds Firm Rules on Stablecoins to Shield Financial System
Brussels Divided as UK-EU Reset Stalls Over Budget Access
Prince Harry’s Remembrance Day Essay Expresses Strong Regret at Leaving Britain
UK Unemployment Hits 5% as Wage Growth Slows, Paving Way for Bank of England Rate Cut
Starmer Warns of Resurgent Racism in UK Politics as He Vows Child-Poverty Reforms
UK Grocery Inflation Slows to 4.7% as Supermarkets Launch Pre-Christmas Promotions
UK Government Backs the BBC amid Editing Scandal and Trump Threat of Legal Action
UK Assessment Mis-Estimated Fallout From Palestine Action Ban, Records Reveal
UK Halts Intelligence Sharing with US Amid Lethal Boat-Strike Concerns
King Charles III Leads Britain in Remembrance Sunday Tribute to War Dead
UK Retail Sales Growth Slows as Households Hold Back Ahead of Black Friday and Budget
Shell Pulls Out of Two UK Floating Wind Projects Amid Renewables Retreat
Viagogo Hit With £15 Million Tax Bill After HMRC Transfer-Pricing Inquiry
Jaguar Land Rover Cyberattack Pinches UK GDP, Bank of England Says
UK and Germany Sound Alarm on Russian-Satellite Threat to Critical Infrastructure
Former Prince Andrew Faces U.S. Congressional Request for Testimony Amid Brexit of Royal Title
BBC Director-General Tim Davie and News CEO Deborah Turness Resign Amid Editing Controversy
Tom Cruise Arrives by Helicopter at UK Scientology Fundraiser Amid Local Protests
Prince Andrew and Sarah Ferguson Face Fresh UK Probes Amid Royal Fallout
Mothers Link Teen Suicides to AI Chatbots in Growing Legal Battle
UK Government to Mirror Denmark’s Tough Immigration Framework in Major Policy Shift
UK Government Turns to Denmark-Style Immigration Reforms to Overhaul Border Rules
UK Chancellor Warned Against Cutting Insulation Funding as Budget Looms
UK Tenant Complaints Hit Record Levels as Rental Sector Faces Mounting Pressure
Apple to Pay Google About One Billion Dollars Annually for Gemini AI to Power Next-Generation Siri
UK Signals Major Shift as Nuclear Arms Race Looms
BBC’s « Celebrity Traitors UK » Finale Breaks Records with 11.1 Million Viewers
UK Spy Case Collapse Highlights Implications for UK-Taiwan Strategic Alignment
On the Road to the Oscars? Meghan Markle to Star in a New Film
×