The Hon. Wasantha Samarasinghe - Minister of Trade, Commerce, Food Security and Cooperative Development

¶ 01 Hon. Presiding Member, during this debate on Regulations under the Imports and Exports (Control) Act relating to imported rice, the Strategic Development Projects Act notification, and the Ports and Airports Development Levy Order, many matters were raised—particularly about rice, as well as other national issues, and even the use of vehicles by the National People’s Power Government.

¶ 02 Since Hon. Dayasiri Jayasekara just spoke on coconuts and is present, let me respond. His data are largely correct. Last year’s coconut production was around 2,680 million nuts, while annual expectation is about 3,000 million. Roughly 1,500 million go to export-oriented industry, and about 1,600 million to domestic consumption. But given the current shortfall in harvest, we face a problem. Estimated harvests: Jan–Feb about 350 million nuts; Mar–Apr 467 million; May–Jun 519 million—the highest. Outside May–June, expected yields are lower. Yet industries need coconuts continuously. Therefore, if we import coconuts, it must be as raw material (not for retail) for export manufacturers, protecting industries, jobs and foreign exchange. That is the Government’s focus.

¶ 03 Some Opposition Members raised bar permits. They should ask Ranil Wickremesinghe who received them; many permits have been sold. Investigations are underway; details, including Bank of Ceylon branch cheque swaps for bar permits, can be provided if needed.

¶ 04 On claims that this Government misuses privileges—vehicles, phones, backup vehicles—let me clarify. We changed the circular in 2024. Ministers earlier had three vehicles; we reduced it to two. Fuel allocation for one vehicle was 600 litres; with three vehicles that was 1,800 litres. Even with two now, we limit practical use to one vehicle and capped fuel at 900 litres. We also cancelled extra landline allowances—previously ministers had two official phones (office and residence) with an additional Rs. 10,000 for the residence line. We revoked such provisions to cut state costs. Regarding staff phone facilities, essential officers like private secretaries, coordinating secretaries, media secretaries and PROs need phones to serve the public; that remains rational.

¶ 05 On rice, Hon. Harsha de Silva mentioned that at the Public Finance Committee, an Agriculture Ministry official claimed one million metric tons of paddy were hidden. If he were here, I would challenge that. Government stores can hold about 500,000 metric tons of rice. Cooperatives, Paddy Marketing Board and Sathosa storage can hold about 300,000 metric tons. Private major millers together hold under 400,000 metric tons. Combined, government and major private capacities are around 700,000 metric tons. Our 2023 total paddy production was 4.518 million metric tons (Maha 2.69 million, Yala 1.828 million). For 2024, Maha 2.68 million and Yala 2.3 million, totaling about 4.9 million; milled rice about 2.9 million metric tons. With such flows, claims of one million metric tons hidden domestically without sufficient storage are implausible. We will investigate this misinformation.

¶ 06 Some industries use rice or paddy for feed; we issued a circular prohibiting such use. If they feed broilers with wheat substitutes, then we must import more wheat. Sri Lanka’s wheat flour need is about 600,000 metric tons, while local production is 250,000, requiring imports of 350,000 metric tons at significant cost. Food security imbalances persist across items—coconut, potatoes, onions—if not carefully balanced.

¶ 07 When we opened rice imports on 3 December and again between 22 December and 10 January, 66,000 metric tons first, and then close to 100,000 metric tons subsequently arrived—about 170,000 metric tons in total. Even so, a shortage of red rice arose. About 20 percent of our people consume red rice, mainly from Matale/Matara small pockets and predominantly from Ampara, Batticaloa, Kilinochchi, Mannar and Hambantota belts. During the previous Government’s distribution, a controlled price of Rs. 190 per kilogram was set, but market availability of white rice at that price was limited, so more red rice was procured and distributed even to populations that typically do not consume it, creating a localized shortage of red rice. As harvesting progresses in Kilinochchi and, weather permitting, in Ampara, Batticaloa, and elsewhere, this will ease.

¶ 08 Long-term solutions lie in ensuring production meets human consumption and animal feed needs distinctly. Layers cannot thrive on rice alone; feed balance affects egg quality. Hence, we established a dedicated Food Security Ministry and convened the Food Security Committee at the Presidential Secretariat with all responsible agencies. We must first build a reliable, accessible database of accurate information; without it, decisions go astray.

¶ 09 When we attempted rice imports, Agriculture officials said imports were unnecessary as local supply was adequate—even claiming one million metric tons of paddy was hidden. There is no storage capacity for that. We must be realistic.

¶ 10 On coconuts, manufacturers are requesting raw material to avoid export market loss within the next two months, which would also threaten jobs. We are working on a plan to address this—carefully, within quarantine protocols—to sustain export industries.

¶ 11 On rice pricing, a few major millers purchase about 30-35 percent of production; medium and small millers about 60 percent; around five percent remains with households. Unless the State holds at least around 15 percent buffer, it is hard to ensure affordable market prices. As harvesting increases later this month, we will consider setting a maximum retail price and intervene to protect both farmer and consumer.

¶ 12 It has only been two months since the National People’s Power formed the Government. We must cultivate more, harvest more and improve productivity—through better seed technology and a healthy dietary culture. We invite all to join and support the Government’s programme. Thank you.