Sri Lanka’s Food Crisis: ‘We’re Going to Starve’

The decision to ban the use of chemical fertilizers issued by Sri Lankan President Gotabaya Rajapaksa in April 2021 caused a significant reduction in crop production. The Sri Lankan government has reversed the ban but so far, no significant chemical fertilizer imports have been made.

“It may not be possible to receive fertilizer in time for the Yala crop (May-August) but measures are being taken to ensure sufficient reserves for the Maha crop (September-March),” said Sri Lankan Prime Minister Ranil Wickremesinghe. wrote on his personal Twitter account at the end of May 19. “I sincerely urge everyone to understand the gravity of the situation.”

On May 20, President Rajapaksa appointed nine new cabinet members, including important positions such as ministers of health, commerce and tourism. He has not appointed a finance minister and the list is highly likely to be kept by Prime Minister Wickremesinghe.

Sri Lanka, an island nation whose economy is dependent on tourism, is facing severe shortages of foreign exchange, fuel and medicine.

“Talking about how difficult life is is not helpful right now,” said APD Sumanavathi, 60, who sells fruits and vegetables at Pettah market in Colombo. “I cannot predict how things will turn out in the next two months. With the current situation, we may not be here anymore.”

Nearby, long lines of people are waiting in front of a shop selling cooking gas cylinders, whose prices have increased from 2,675 rupees in April to nearly 5,000 rupees.

“Only about 200 gas cylinders were sold, even though there were about 500 people waiting,” said Mohammad Shazly, a part-time driver. He lined up on Tuesday in the hope of buying gas to cook for his family of five.

“Without gas, without kerosene, we cannot do anything. What is the final option? Without food, we will die. That is 100% going to happen.”

Nandalal Weerasinghe, the governor of Sri Lanka’s central bank, said on May 19 that foreign exchange had been secured thanks to a loan from the World Bank and remittances to pay for fuel and gas shipments.

Inflation in Sri Lanka may reach 40% in the next few months but the main cause is supply pressure. Measures from the government and central bank are controlling the demand-pull portion of inflation, the governor said.

Inflation in April was 29.8%, of which food prices increased by 46.6% year-on-year.

Sri Lanka’s economic crisis stemmed from the COVID-19 pandemic affecting the tourism industry, rising oil prices and the populist tax cuts of President Rajapaksa’s government.

In addition, there are a number of other reasons such as the fuel subsidy policy and the decision to ban the import of chemical fertilizers.

The G7 group of economic powers backs Sri Lanka’s debt forgiveness efforts, G7 Finance Ministers said on May 19, after Sri Lanka announced a bond default.

According to Governor Weerasinghe, the debt restructuring plans are almost complete and he will soon submit them to the Sri Lankan cabinet.

“Our position is very clear. We can’t make payments, unless we do debt restructuring.”

An International Monetary Fund (IMF) spokesman said that they are monitoring developments very closely and that the IMF mission in Sri Lanka is expected to conclude technical negotiations on a potential lending program on May 24. .