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SRI LANKA2003

Agriculture minister hopes peace will draw American agribusiness

Workers tend the onion fields, north of Trincomalee.
Photo by James Overly
A fisherman stands next to his boat near Trincomalee. After 20 years of fighting, the ceasefire allows him to return to the sea.
Photo by Alex Kersis
Sri Lanka’s famous red bananas, unique to the country.
Photo by James Overly
Sri Lankan fishing boats, while colorful, are inadequate for commercial fishing.
Photo by James Overly

With its tropical location and altitudes ranging from sea level to nearly 8,000 feet, Sri Lanka is one of those countries that could grow just about anything. Instead, the country still imports large quantities of foods that it could grow itself.

For example, Sri Lanka is blessed with the sweetest pineapples in the world, far superior to what Americans purchase in their local supermarket for $5 apiece, and rated higher even than the famous Philippine pineapple. But it grows only enough to meet about half of domestic demand. Sugar cane is cultivated, but the country imports more than half the sugar it consumes. Beautiful orchids abound throughout the country, but three is no flower export business.

The country boasts bountiful fishing waters, but the war forced the government to curtail fishing activity along most of the coasts. For twenty years, Sri Lanka fishermen were permitted to do little commercial fishing, and the country imported the fish it consumed. Now that the ceasefire is in effect, fishing could resume, but after 20 years, the country has only a few small boats. The fishing industry is so meager that J.C. Amarasuriya, Chairman of the Board of the Commercial Bank of Ceylon, quips, “Sri Lankan fish die of old age.”

There are, of course, extensive plantings of tea, coconuts, and rubber grown for export. These crops lend themselves to large plantings, and so come under the government’s Ministry of Plantation Industries. Livestock and most other agricultural activity come under the purview of S.B. Dissanayake, Minister for Poverty Reduction and Minister of Agriculture and Livestock.

Dissanayake’s task is to rejuvenate smallholder agriculture, an economic sector severely affected by 20 years of civil war. “Over the last 10 to 15 years,” he says, “the agriculture sector declined. People were forced from their lands by the war, and those who tried to farm were harassed. Now his ministry confronts the problems of attempting to restore and improve smallholder agricultural production.

While peace and good weather this year have yielded a 19 percent increase in rice production, and yields of other crops have improved, Dissanayake and his staff must deal with structural problems in the agricultural sector. The minister cites advances in the provision of agricultural extension services and work to improve the distribution and storage system. “We suffer a 35 percent handling loss,” he says.

While it is clear that the current government is placing greater emphasis on improving agricultural production than in the past, the minister says the government is working closely with the private sector. In particular, the minister is interested in attracting agribusiness. “We offer tax relief packages, export tax rebates and many other incentives,” the minister says. The government expects to implement a World Bank poverty reduction program soon, which will provide money to assist agricultural development.

The minister also is anxious to see higher technology and new techniques infused in Sri Lanka’s agricultural system. “We need hybrid animals, new seeds and new technology in our agriculture,” he says.

Expressing his gratitude to the United States for its support of the Sri Lankan peace process, Dissanayake adds, “We have a lot of opportunities in agriculture. Just one or two American agribusinesses could have a huge impact here.”

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