Sri Lanka Reverses Organic Farming Policy Amid Crisis

Sri Lanka Reverses Organic Farming Policy Amid Crisis

Sri Lanka’s government has lifted its ban on chemical fertilizers. This reversal comes amid a severe economic crisis and widespread food shortages. The ban, implemented in May 2021, aimed to make Sri Lanka fully adopt sustainable farming practices.

Rice yields, a staple in Sri Lanka, dropped by 40-50% nationwide. This decrease happened during the Maha growing season after the organic policy started. Sri Lanka had to import 300,000 metric tonnes of rice in just three months.

The new policies have hurt Sri Lankan farmers financially. Many can’t afford essential farming inputs, and some have stopped farming altogether. Food inflation is around 30% and expected to rise further.

Foreign reserves have shrunk to $1.8 billion. This makes it hard for the government to afford imports, including fertilizers. Experts call the food crisis a “man-made disaster”.

Increased hardships are expected in the coming months. Children and pregnant women are particularly at risk. The government is trying to address growing concerns about food availability and accessibility.

Impact of Fertilizer Ban on Sri Lankan Farmers

Sri Lanka’s 2021 chemical fertilizer ban has severely affected smallholder farmers. The ban aimed to reduce imported fertilizer dependence and promote organic farming. However, it resulted in widespread crop failures and decreased agricultural output.

Before the ban, 2 million Sri Lankan farmers relied on subsidized chemical fertilizers. The abrupt shift to organic farming left many struggling to adapt. Some farmers experienced a 50-60% decrease in harvests, devastating their incomes.

Many farmers now can’t afford essential farming inputs like pesticides and equipment. This has made it hard for them to maintain their farms and livelihoods.

Inability to Afford Farming Inputs

The fertilizer ban and economic crisis have made it tough for farmers to buy necessary inputs. Many have taken high-interest loans for pesticides and other essentials. This has worsened their financial situation.

Lack of affordable farm subsidies has left many unable to sustain their farms. This has led to widespread poverty and food insecurity in rural areas.

Farmers Abandoning Cultivation

Many smallholder farmers in Sri Lanka have decided to quit farming altogether. Reduced crop yields and increased input costs have made it impossible to sustain their farms.

Farmers are now seeking alternative income sources, often in urban areas. This trend has significantly reduced agricultural output across the country. It’s contributing to ongoing food shortages and economic instability.

Government Reverses Organic Farming Policy Amidst Food Shortages

Sri Lanka’s government has recognized the need to change its organic farming policy. President Gotabaya Rajapaksa admitted mistakes that require fixing to address food security issues. The goal is to boost domestic food production and ease growing protests.

The government has asked the World Bank for help to buy fertilizers. They plan to bring back subsidies for farmers. However, the details of these changes are still unclear.

Farmers remain doubtful about the government’s ability to keep its promises. This is due to the severe shortage of foreign currency in the country.

The chemical input ban has severely impacted crop yields. The last maha seasonal harvest dropped by 37% compared to the previous year. This is the lowest yield since 2003/04.

Food insecurity has affected about 6.3 million people in Sri Lanka as of September 2022. Food inflation has reached a staggering 94.9%.

To tackle the crisis, Sri Lanka secured a $55 million credit line from India Exim Bank. This money will be used to purchase fertilizers.

The government also had to pay $6.87 million for unsuitable organic fertilizer from China. This was due to their short-lived organic farming policy.

IFOAM – Organics International is organizing workshops to support Sri Lanka. These aim to help the country transition to organic agriculture more sustainably. The focus is on reforms that prioritize food security and domestic production.

Economic Crisis Exacerbates Agricultural Challenges

Sri Lanka’s economic crisis has worsened farmers’ struggles after the organic farming policy. Foreign reserves are low, and inflation is high. Shortages of fuel, food, and medicine have become common.

The country’s foreign debt skyrocketed from $11.3 billion in 2005 to $56.3 billion in 2020. In 2021, it reached 119% of the GDP. Sri Lanka defaulted on its debt in April 2022.

Rising fuel costs make it hard for farmers to grow and transport crops. Power cuts disrupt irrigation and milling. The government raised taxes to increase revenue.

Experts warn that food access and affordability will remain big issues. Vulnerable populations may face increased malnutrition. Many farmers are abandoning their livelihoods due to these challenges.

Globally, 193 million people faced food insecurity in 2021. In East Africa, 265 million live on less than $1.90 per day. About 40% of the population there has poor access to food.

A review of recent literature shows urgent need for solutions. These must address the complex issues facing Sri Lankan farmers and the broader population.

Dr. Hans to Step Down from Axiata Group to Lead SL

Dr. Hans to Step Down from Axiata Group to Lead SL

Dr. Hans Wijayasuriya, a key figure in telecommunications, is leaving Axiata Group. He’s been with them for over 30 years. He played a major role in markets like Malaysia, Indonesia, and others. Now, he’s moving to head Sri Lanka’s digital drive.

Dr. Wijayasuriya won the 2024 GSMA Chairman’s Award for his global mobile industry work. He’s the new Chief Advisor to Sri Lanka’s President on Digital Economy. His work starts on January 15, 2025, advising on digital policies.

He’s still helping Axiata Group as CEO of Telecommunications Business. He’ll hold this position until he starts his new role in Sri Lanka. There, he aims to enhance the digital landscape. This move could position Sri Lanka to top Asian Frontier Markets in 2025.

Dr. Hans to Step Down from Axiata Group to Lead SL’s Digital Economy Agenda

Dr. Hans Wijayasuriya’s Departure from Axiata Group

For over three decades, Dr. Hans Wijayasuriya played a key role at Axiata Group. His work led to major changes in the telecommunications industry. He also began a leadership transition and corporate restructuring. Wijayasuriya’s guidance helped Axiata grow and reach new markets.

Celebrating a 30-Year Tenure and His Role in Telecommunications

Dr. Wijayasuriya spent more than 20 years leading Dialog Axiata. Under his watch, it grew into a top player in its market. With over 11 million customers, it moved from 4th to 1st place because of his efforts.

Axiata Group Leadership and Global Mobile Industry Impact

With Dr. Wijayasuriya in charge, Axiata Group made huge investments in Sri Lanka reaching $1.9 billion by 2015. He led the acquisition of MTT and expanded services. His push for digital solutions made Axiata a tougher competitor.

His work boosted Axiata’s operations and set the stage for future leadership. Key milestones during his time are listed in the table below:

Year Event Impact
1997-2000 Transition to Market Leader Established as No. 1 in Mobile Industry
2008-2009 Restructuring and Downsizing Rebounded within 6-8 Quarters Post-restructuring
2015 Investment in Sri Lanka Reached $1.9 Billion, Expanding Market Dominance

Transition Plan for Axiata Group and the Role of Dr. Wijayasuriya until 2025

Dr. Wijayasuriya is getting ready to leave. But a strong leadership transition plan is in place. He will advise until 2025 to help Axiata and Sri Lanka’s digital future. For more on Sri Lanka’s economy and politics, check this article.

This careful planning shows Dr. Wijayasuriya’s impact. It prepares future leaders for the changing world of telecommunications.

Dr. Hans to Step Down from Axiata Group to Lead SL’s Digital Economy Agenda

Dr. Hans Wijayasuriya is making a big change. He’s moving from Axiata Group to lead Sri Lanka’s digital economy. His goal is to boost technology use in different sectors to help the economy grow.

Appointment as Chief Advisor to President on Digital Economy

Dr. Wijayasuriya is now the Chief Advisor to President Anura Kumara Dissanayake. This move is huge for adding digital tech in government. He will focus on making departments like Customs and Inland Revenue work better online.

He plans to work with others to make the economy stronger through tech. This includes sharing technology and working together on economic development.

Strategic Vision for Sri Lanka’s Digital Transformation

Dr. Wijayasuriya has big plans for Sri Lanka’s digital future. He wants to spend money on digital tools and train a tech-savvy workforce. His aim is to make the country a tech leader in the area.

He has a plan that uses resources from both the public and private sectors. The goal is to remake digital systems to help Sri Lanka’s economy.

Leveraging Technology Adoption for Economic Development

Dr. Wijayasuriya believes using technology well can grow the economy. He wants to digitalize how the government works and support tech start-ups. The plan is to build a place where new tech leads to growth.

Working with global tech leaders is key to this strategy. Their expertise and money are important. They’ll help Sri Lanka grow in a digital world, offering both sustainability and big economic pluses.

Future Prospects: Envisioning Sri Lanka’s Digital Economy Under New Leadership

Sri Lanka’s digital economy is ready for a big change. Dr. Hans Wijayasuriya is leading this change. As the head of Dialog Axiata PLC, he brings a lot of experience. Dialog Axiata is the largest listed company on the Colombo Stock and the top foreign investor in the country. Under his leadership, Dialog Axiata’s revenue went up to Rs. 141.9 billion. This was an 18% increase from the year before, showing the power of strong digital infrastructure.

Dialog Axiata has over 17 million subscribers. In 2021, they invested about Rs. 31.7 billion in connectivity. This shows their commitment to improving Sri Lanka’s digital landscape. Because of this investment, revenue from Mobile and Fixed Broadband grew by 10% and 39%, respectively. With Dr. Wijayasuriya’s vision, Sri Lanka’s digital economy is set to get even better.

Dr. Wijayasuriya also advises the President on the digital economy. This shows Sri Lanka’s focus on digital growth. The Sri Lanka Digital Marketing Summit 2023 is a big event. It has leaders from big companies like Google and Meta. Dialog Axiata is the main sponsor and plays a big role in organizing it. This underlines their importance in boosting Sri Lanka’s digital ecosystem. Despite economic challenges, the push for digital growth is strong. This promises a future where technology leads to progress and resilience.

ASPI Surges 15% as Stock Market Recovers in 2024

ASPI Surges 15% as Stock Market Recovers in 2024

The Sri Lankan stock market showed strong recovery in 2024. The All Share Price Index (ASPI) went up a lot in the first half of the year. This was a big moment for the country’s economic bounce back. It showed investors were feeling good about putting their money in Sri Lanka. The rise in the ASPI index was a sign of growing confidence. It also showed the country’s overall economic improvement.

The economy of Sri Lanka is looking up, according to fiscal data. Government revenue jumped from Rs. 1,448 billion in 2022 to Rs. 2,110 billion in 2023. Meanwhile, tax revenue went from Rs. 1,283 billion to Rs. 1,934 billion. At the same time, government spending increased a lot. This was to help the economy grow more.

The country sold less abroad, with exports dropping. However, the tourism sector saw a lot more visitors. This showed the world is trusting Sri Lanka more. There was also a big increase in money sent home by workers abroad. This helped improve the country’s financial health overall.

The recovery of the stock market was helped by better monetary conditions. The interest rates banks charge each other fell significantly. And, the returns on short-term government loans also went down. This made it cheaper for people and companies to borrow money. This likely helped the stock market do well, attracting both local and global investors.

Stock Market Recovers, ASPI Gains 15% in First Half of 2024

The 15% increase in the ASPI shows Sri Lanka’s economic progress. These results are good news. But, we need to watch the world’s political and economic changes too. They could affect the market. Still, this positive change gives hope for a strong market and ongoing investments ahead.

Analyzing the Reasons Behind ASPI’s 15% Climb

The All Share Price Index (ASPI) of the Sri Lankan stock market rose by 15% in 2024. This jump shows the impact of different factors. The foreign investment trends, updated economic policies, and sectoral performance together led to this market upturn.

The Impact of Foreign Investment Trends on ASPI

Foreign investment is key to the Sri Lankan stock market. There’s an ongoing change between money coming in and out. Even with a net foreign outflow in 2024, foreign investors bought LKR 100 million worth. This indicates global trust in some market sectors.

How Economic Policies Influenced the Stock Market Recovery

New economic policies have helped the market find stable ground. The 2024 Fiscal Management Report outlines a focus on spending smart and increasing revenue. These actions helped the Sri Lankan stock market find balance, aiding the ASPI’s rise.

Sectoral Performances Driving ASPI’s Surge

Important sectors like financial services helped push the ASPI up. Sectors such as diversified financials, food, beverage, & tobacco, have seen big growth. They played a major part in the ASPI’s 15% increase in 2024.

Sector Contribution to Turnover Percentage of Total Market Turnover
Banking and Financial Services LKR 662 million 30%
Diversified Financials LKR 403 million 18%
Food, Beverage & Tobacco LKR 400 million 18%
Capital Goods LKR 210 million 9%
Consumer Services LKR 173 million 8%

With market capitalization on the rise, it’s evident that specific investments and policies worked together to lift the ASPI. These efforts show the detailed work needed in Sri Lankan stock market analysis. It illustrates how government, sectoral, and global factors combine to boost the market.

Sri Lankan stock market analysis

Stock Market Recovers, ASPI Gains 15% in First Half of 2024

The financial news from Sri Lanka’s stock market is positive. The All-Share Price Index (ASPI) went up by 15% in the first half of 2024. This shows the market and economy are strong. Investors are showing confidence in different sectors, not just one. Banks and John Keells Holdings made big contributions. The S&P 20 index also went up by about 19%, showing great investment chances in the country.

Local money flowing into the market has helped it recover. This is because investment in bonds is giving lower returns. Also, investors are taking less risk. This change matches well with the good news from the International Monetary Fund (IMF). Past financial troubles made the Sri Lankan Rupee drop. But now, the market could go up by 40-60% in the next 18 months. This is if it keeps following the IMF’s advice and gets ongoing investor support.

As people become more hopeful about the market, how Sri Lanka deals with its foreign debt is crucial. If banks do well, we might see changes in the stock market. The market has grown, showing a 9.77% gain recently. Measures of market health look good too. Local players, wealthy individuals, and regular folks have good expectations for mid-2025. They think the market will keep getting better. This is linked to peaceful changes in politics, moving towards the Janatha Vimukthi Peramuna (JVP). The story of Sri Lanka’s economic recovery ties into this political shift. This shows the stock market’s rise is also a sign of the country’s overall strength.

Musk’s Starlink Wins Sri Lanka Licence | Satellite Internet

Musk’s Starlink Wins Sri Lanka Licence | Satellite Internet

In a big step for telecommunications in Sri Lanka, the country now welcomes SpaceX’s Starlink. This marks a change in laws not seen in nearly 30 years. Sri Lanka is now a leader in South Asian broadband, thanks to Elon Musk’s vision.

Musk's Starlink Wins Sri Lanka Licence

SpaceX controls 60% of the world’s active satellites. This expansion is a big deal for the area. With Starlink in Sri Lanka, the night sky is now filled with over 6,000 satellites. This step not only improves broadband but also makes SpaceX a legend.

Starlink’s license in Sri Lanka is a big win. It promises better broadband and opens doors in nearby countries, like India. This move follows global space trends, showing how satellites connect us more than ever.

Starlink’s Expansion into South Asia with Sri Lankan Presence

Elon Musk’s Starlink initiative is a big leap in tech innovation, with new operations in Sri Lanka. This move shows a strong global interest in space and helps get rural areas in South Asia online. With over 6,000 satellites, Starlink plans to change how South Asia uses satellite internet, especially in hard-to-reach places.

Sri Lanka’s new telecom laws are key to this big step. They help foreign tech companies like Starlink start up easier. One big change is the 21st Amendment, which improves governance. It helps democracy too; more info here. This makes it easier for Starlink to launch, and may lead to more tech-friendly laws in nearby countries.

Elon Musk’s Strategic Move into Emerging Markets

By focusing on fast-growing places like Sri Lanka, Starlink aims for big growth. Bringing new tech here can close the digital gap and boost the economy. It fits Musk’s goal to make the internet available worldwide, especially where it’s most needed.

Impact of Sri Lanka’s New Telecommunications Legislation on Starlink’s Entry

New laws in Sri Lanka welcome tech companies. They support an open market and lower entry barriers for firms like Starlink. Thanks to these changes, Sri Lanka could lead tech innovation in South Asia.

The Promise of Improved Broadband Connectivity in Remote Regions

Starlink aims to improve internet access in Sri Lanka’s remote areas. This will help schools, hospitals, and businesses. Connecting these areas promises a new future of opportunity beyond physical limits, helping rural development.

This tech boost is set to transform education and healthcare in Sri Lanka. Plans are in place to mix tech with learning, explained here.

Musk’s Starlink Wins Sri Lanka Licence: A Milestone for SpaceX

Getting a licence for Starlink satellite internet in Sri Lanka is a big win for Elon Musk’s SpaceX. It marks a global impact with over 7,000 satellites orbiting the Earth since September 2024. Entering Sri Lanka’s market is key, especially with the country’s $37.5 billion debt and $503 million in debt payments by mid-2024.

SpaceX’s journey has been rapid, reaching 4 million users by September 2024 compared to 1 million in December 2022. Revenue jumped from $1.4 billion in 2022 to an estimated $6.6 billion in 2024. Still, Starlink’s creation cost at least $10 billion, facing challenges such as orbital congestion affecting astronomy.

The entry into Sri Lanka boosts SpaceX in the satellite net world and supports Sri Lanka’s tech and economic strategies. It’s a big step for Sri Lanka and SpaceX, bringing new opportunities for connectivity and growth.

President Dissanayake Dissolves Parliament, Calls for Elections

President Dissanayake Dissolves Parliament, Calls for Elections

President Anura Kumara Dissanayake has made a significant move in Sri Lanka’s politics by dissolving Parliament. This major step is in readiness for a snap election, abiding by the Constitutional procedure. It reflects President Dissanayake’s intent to reshape government policies to match his vision, following his election win.

President Dissanayake Dissolves Parliament, Calls for November Elections

Under Dissanayake’s lead, the National People’s Power (NPP) held just three seats in the previous 225-member assembly. Yet, this bold move sets the foundation for transforming the legislature. The Election announcement for November 14th aligns with the people’s hopes and comes almost a year ahead of the usual schedule.

Sri Lanka is currently facing tough economic hurdles, a continuation of the 2022 economic slump. Amidst this, the NPP has been vocal about fighting corruption and poverty. This push grew stronger after Dissanayake’s support surged from 3% in 2019 to winning the next election, showing his commitment to strengthening Sri Lanka’s governance. This is crucial for managing the adjustments needed for a vital IMF bailout package.

President Dissanayake’s Bold Move: Dissolving Parliament

Sri Lanka’s new president, Anura Kumara Dissanayake, made a bold move. He dissolved the government. This marks a big moment in Sri Lanka’s politics. It shows he’s serious about his campaign promises for a transparent and reformed government.

President Dissanayake signing Government dissolution documents

Dissanayake leads the National People’s Power alliance. His goal is a new election that reflects the current issues. This action isn’t just symbolic. It aligns with the public’s demands, shown by his win in the election.

A Sudden Parliamentary Decision and Its Background

Dissanayake won the presidency unexpectedly, without a clear majority at first. A second count confirmed his win. His victory in the 2024 elections was a huge leap from a small vote share in 2019. People appreciate his firm stand against corruption.

Implications for Sri Lanka’s Political Landscape

The government’s dissolution is a turning point for Sri Lanka. Snap elections are coming. These elections could change the political scene a lot. Before, the National People’s Power had few seats. The new elections can create a parliament that reflects current public desires.

This change brings hope for not just political reform but economic growth too. A World Bank report expects a 4.4% growth for Sri Lanka in 2024. Development in industry and tourism could boost the economy.

The result of this political shift aims to create a government that truly represents the people. This will shape Sri Lanka’s future political and economic paths in the years ahead.

The Anticipated Impact of the November Election

As the November election date draws near, Sri Lanka is at a crucial point. This concerns its economic and political future. The outcome of the elections is expected to have a big impact. This impact concerns both Sri Lanka’s economy and key policy reforms. These reforms are influenced by the IMF bailout terms and the governance style of the new government.

The decision to dissolve Parliament and set an election timetable is a major political update. It could change the administration’s setup. The IMF’s recent agreement to provide $2.9 billion to Sri Lanka highlights the need for urgent reforms and fiscal stability. The upcoming elections are expected to drive these reforms.

Sri Lanka’s Economy and the IMF Bailout Overhaul

Sri Lanka’s economic situation is critical, with huge foreign debts and a great need for IMF help. After the elections, it will be very important for the government to stick to the IMF bailout terms. This includes debt restructuring and systemic reforms for economic stability. Changes in policy after the November election date could alter the bailout terms. This would affect recovery paths and international economic relationships.

Prospects for Anti-Corruption and Anti-Poverty Policies

The upcoming election is key for anti-corruption policies and anti-poverty policies. The public’s desire for clean governance has made these policies very important. Proper management of these issues could greatly gain public trust and support. This could lead to a government that values transparency and fair growth.

Policy Focus Pre-Election Post-Election Forecast
Economic Stabilization High Dependency on IMF Aid Increased Self-sufficiency
Anti-Corruption Measures Initial Frameworks Set Strengthening of Institutional Mechanisms
Poverty Reduction Limited Social Programs Expansion of Social Safety Nets

This election is crucial for both the immediate economic recovery and the long-term welfare of the nation. As Sri Lanka goes through these significant changes, the whole world is watching. The November elections could mark a significant shift for this South Asian country.

Conclusion

In the landscape of Sri Lanka politics, President Dissanayake’s decision to dissolve parliament is key. This move leads to an election on November 14, 2024. Over 17 million voters are set to cast their votes. The world will watch as Sri Lanka tackles this pivotal moment amidst economic hardships. The nation’s efforts to meet IMF’s fiscal conditions are crucial for growth.

The race for 225 seats in Parliament is filled with anticipation. To gain a majority, a party needs at least 113 seats. With only three seats, the governing party faces a tough challenge. This comes after Harini Amarasuriya became the first female prime minister in decades. Her election is significant, mirroring the era of Sirimavo Bandaranaike. Additionally, steps like lowering policy rates show efforts to boost the economy without harsh austerity.

President Dissanayake’s call for November elections starts a journey to tackle corruption and poverty. With the election date near, there’s a push for effective governance. The next parliament meets on November 21, 2024. They face challenges like debt renegotiation and following IMF’s advice. The upcoming elections are watched globally, offering a chance for Sri Lanka’s recovery and political renewal.