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

¶ 01 Hon. Deputy Speaker, thank you for the opportunity to speak in this debate on President Anura Dissanayake’s Policy Statement.

¶ 02 I thank the people of the country for electing the new NPP Government, and the people of the Anuradhapura District for giving us over 331,000 votes to elect seven MPs.

¶ 03 Throughout this debate, many have raised issues that have arisen in this short period since our Government assumed office. Chief among them is the rice issue. Though our Government has been in office only a short time, from 21 September, when Anura Dissanayake became President, he convened the then three-member Cabinet and relevant institutions to plan urgent measures. After our Cabinet took oaths on the 18th, we took further steps. It is important to brief the House on the present situation.

¶ 04 When the Agriculture Minister, Comrade Lal Kantha, and I met with our officials, we discovered a serious disconnect between data systems and ground reality in agriculture. We had to reconcile that.

¶ 05 Sri Lanka cultivates two seasons—Maha and Yala—and though we can grow rice in two seasons, our people consume rice year-round. In Maha 2023/24 we produced about 2.6 million metric tons of paddy, and in Yala about 2.2 million metric tons—totalling about 4.8 million metric tons of paddy. That yields at least about 3.0 million metric tons of rice. Our daily rice requirement is around 6,500 metric tons—about 195,000–200,000 metric tons per month. On paper, this implies a surplus. Yet, rice was not available in the market. Hence the serious issue.

¶ 06 Why? Because other sectors draw on paddy and rice. We examined those factors. For example, Sri Lanka is self-sufficient in eggs—9 million produced daily; consumption about 8.58 million. There are about 20–25 million layer hens and another 8 million in the pipeline. Feeding these flocks requires paddy byproducts; the layer and broiler industries together consume roughly 1,000–1,500 metric tons of paddy-derived inputs per day—30,000–40,000 metric tons per month, about 360,000 metric tons a year. Ornamental fish and beer production also consume some quantities of rice/paddy byproducts. However, sectoral data are fragmented across ministries and systems. We are now integrating datasets of Agriculture, Trade and others to provide a clear, shared picture for policymakers and industry.

¶ 07 Meanwhile, the President met producers and importers and urged collective action to stabilize supply. We decided to permit rice imports. Then the country faced floods—over 250,000 acres inundated—which will impact production; about 70,000 acres will need replanting. Therefore, we foresee short-term tightness in rice supply.

¶ 08 Accordingly, at the last Cabinet meeting, we decided to lift import restrictions on all rice varieties until midnight 21 December, to bring in maximum possible quantities. We expect 50,000–70,000 metric tons by the 20th. Sathosa and the STC will import an additional 70,000 metric tons. Millers told us they could not release stocks due to bank issues. With Presidential intervention, a solution was provided yesterday. From today, they have agreed to supply 200,000 kilograms of rice per day at Rs. 220 per kilo via Sathosa to the public. Separately, by tenders closing after the 20th, 10,200 metric tons will arrive, followed by a further 41,600 metric tons. These steps will ease the market and make rice available.

¶ 09 On coconuts, concerns were raised. Yesterday, the President, the Minister of Plantation and Rural Infrastructure, and I met relevant state plantation companies—Kurunegala Plantations Ltd., Chilaw Plantations Ltd., etc.—and directed them to release coconuts from state estates to the public. We halted tenders for urban-area supplies and instructed sales to Sathosa at the last tender price—Rs. 110 per nut—so Sathosa can sell at Rs. 130 over the next two weeks, easing acute shortages in urban fringes. Sathosa will distribute one million coconuts over the next two weeks.

¶ 10 Where individuals or entities create artificial shortages, we will first seek solutions through dialogue; if that fails, we will act to protect consumers and ensure availability.

¶ 11 Thank you.