Viewpoint: Sri Lanka economic crisis deepens as recently-imposed chemical fertilizer ban stirs inflation in a country already suffering from the pandemic

Credit: VON
Credit: VON

An ill-advised ban on the use of chemical fertilisers and pesticides, combined with pandemic-induced contraction of the economy and decline in export and tourism earnings, has compelled Sri Lanka to effectively place itself under a state of emergency.

The Sri Lankan rupee has fallen, inflation has risen and food prices have hiked. The emergency regulations were promulgated under the Public Safety Ordinance on the supply of essential goods at midnight on August 30.

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According to reports, Sri Lankan tea production is likely to suffer owing to the government’s policy. The country produces about 300 million kg of tea. It earns about $1.25 billion from tea exports. The output of pepper, cinnamon, vegetables and staples like rice is expected to be crimped.  Sri Lankan farmers have been protesting the ban. On August 3, the government allowed imports of certain fertilisers for select users but denied a reversal of policy.

Organic agriculture being low-yielding is land intensive. The crops may be resilient but they cannot feed a growing population when cultivable land is shrinking.

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