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

¶ 01 Madam Deputy Chairperson of Committees, I am glad Hon. Dayasiri Jayasekara remained in the Chamber, because I must correct some inaccuracies.

¶ 02 First, regarding Mantai Salt Ltd.: there are no Raigam Group directors on its board. Raigam’s directors are at Puttalam Salt Ltd., which was privatized about 25 years ago with shares allocated, including 10 percent to cooperatives and People’s Bank, and Raigam acquiring about 17 percent, now 28 percent. Thus Raigam nominees are on Puttalam Salt’s board, not Mantai’s.

¶ 03 On imports of mung, cowpea, etc.: Sri Lanka’s agriculture sector faces a chronic data problem. In the Food Policy and Security Committee we have been working to consolidate reliable data—production, consumption, and import needs for rice, salt, coconut, potato, and pulses. For example, in 2024 mung bean production was about 15,000 MT, while imports were around 14,000 MT. The Department of Agriculture estimates total requirement for food and human consumption around 20,000 MT, but methodology needs standardization. To balance availability and protect farmers, duties are imposed on some items—often around Rs. 300 per kilo on cowpea and mung—to prevent indiscriminate imports. Shortfalls are filled, but still at protective price levels.

¶ 04 On parate enforcement: in December last year, the suspension ended and distressed assets were to be sold. At the first Cabinet meeting of this government we extended the moratorium by six months and urged borrowers to reschedule with banks. State banks, in many cases, reduced accrued interest by 25–65 percent and rescheduled. Some had borrowed for working capital rather than production, creating genuine issues, but reductions were offered. Those who still have not rescheduled can come forward even now; the door remains open. Private banks have been less cooperative, as you rightly noted. We are advising affected borrowers to negotiate rescheduling or shift to other banks where feasible.

¶ 05 Now, to salt. We lifted import restrictions due to a shortfall arising from climatic conditions and the production cycle. Salt is not made like appa; it takes roughly 10 months for natural solar salt. The STC imported about 12,400 MT. We met 17 producers in December and allocated around 8,000 MT to Lanka Salt Ltd., Hambantota, to pack and sell. Producers later told us in February that the coming harvest might be poor due to rains and flooding of pans; crystallized salt dissolved back. Consequently, the expected harvest could not be taken.

¶ 06 For context: since 2016, Lanka Salt Ltd. typically harvested around 100,000 MT annually (Yala and Maha combined). In 2022, 111,000 MT; in 2023, 73,000 MT; in 2024, 68,000 MT. This year they initially estimated near 100,000 MT, and started harvesting from the 2nd (of the month), lifting 600–700 MT so far at Palatupana. But yields are below expectations; they now hope for about 50,000 MT this year. At National Salt (Mantai), harvesting has also begun, about 250–300 MT this week, with this year’s expectation now 10,000–15,000 MT, down from 30,000 MT earlier.

¶ 07 We opened the market for 20 days for salt imports. Even so, all importers had to obtain permits from the Food Commissioner’s Department under our Ministry. Approvals were issued up to around 302,000 MT. Of that, about 106,846 MT have already arrived, with a further 29,348 MT en route. We made it clear: shipments with Bill of Lading dates after the 10th would not be admitted under the window. Some loaded after that (June 11–14); we have notified such importers to re-export, or surrender consignments for state use—non-iodized salt to National or Lanka Salt, and iodized salt to SATHOSA—to ensure orderly market supply.

¶ 08 Regarding prices: the Opposition claims retail moved into “two digits to three digits.” Historically, salt has seen excessive margins—often 90–110 percent. For example, when Lanka Salt offered a 400 g packet at Rs. 52 ex-factory, it retailed around Rs. 120—over 100 percent margin. This is not new; it is a long-standing industry issue. We are engaging with Lanka Salt, National Salt, and Mantai Salt to fix fair ex-factory prices when their harvests arrive.

¶ 09 We imported both iodized and non-iodized salt. Iodized can go straight to market; most imports were non-iodized for processing industries. In processing 100 kg of raw non-iodized salt, about 65–68 kg of retail-grade salt emerges, with roughly 30–35 percent waste. Thus non-iodized salt landed at Rs. 80–85 per kg becomes around Rs. 120 after processing and packing. We are working with the Consumer Affairs Authority and its Pricing Commission, and with producers, to keep a 400 g packet at about Rs. 100 as the new harvest comes in. Crystal salt is targeted at Rs. 140 per kg. We aim to supply powdered table salt at about Rs. 160 per kg, while some are still selling up to Rs. 210. As stocks normalize over the next eight months, prices will ease. Those who sold at Rs. 250 will be unable to hold inventory; containers will stack up, and they will be forced to sell at or below Rs. 90–100.

¶ 10 Imports carry a Rs. 40 per kg duty to protect the industry; even with that, prices are coming down. We opened the window to create competition and prevent artificial scarcity.

¶ 11 Looking ahead, the best harvest months are July–September (Yala). Maha failed; we are now in Yala, when strong sun aids production. We expect at least 50,000 MT in Yala, though we had hoped for 100,000 MT annually. We did not drain tanks or seed clouds with chemicals; weather drove this shortfall. We are exploring technology to improve yields: modern methods can produce the equivalent of an acre’s output on as little as 10 acres of optimized pans, and even more intensively with new technology. Investors are discussing viable proposals with us; with such investments, Sri Lanka can meet local demand and even export specialty salts, like pink salts to hotels and food-grade additives with Health Ministry clearance. Currently we rely on natural salt in Hambantota, Puttalam, and Mantai; when weather does not cooperate, output falls. No government brought artificial salt technology to these sites; we intend to pursue this now.

¶ 12 On allegations of commissions in imports today: if anyone has evidence—such as Hon. Dayasiri’s claims about CPC—please lodge complaints with the Bribery Commission. We will pursue and punish offenders. Do not merely speak in the Chamber.

¶ 13 On rice: allegations about previous SATHOSA losses of Rs. 8 billion and shuttering due to imported rice scams are documented. Today we have not engaged in such wrongdoing. Cabinet first permitted 70,000 MT for SATHOSA and STC; when that was insufficient, we opened the market for a fixed window, which brought in about 170,000 MT—consistent with the window, not the initial tender.

¶ 14 There is a current issue with Keeri Samba hoarding. The Consumer Affairs Authority and the Paddy Marketing Board collected data from 678 mills: 82,000 MT of Keeri Samba are held, 75,000 MT in Polonnaruwa alone, yet retail is around Rs. 300 per kg versus a controlled price of Rs. 260, with an extra Rs. 40 taken at the counter. This cannot continue; we are addressing it. We will only allow further rice imports if absolutely necessary.

¶ 15 For Yala, 530,000 hectares were cultivated—the highest in recent years. Fertilizer subsidies have reached 97 percent coverage, with Rs. 12.9 billion disbursed. We will continue measures to boost production across sectors so consumers get fair prices while industries revive. If the Opposition needs salt at low prices, give us the address; we can arrange supply. Do not pay Rs. 300 per packet; we will fix this market.

¶ 16 Question put, and agreed to.