The Hon. (Prof.) L.M. Abeywickrama

¶ 01 Hon. Deputy Speaker, I am pleased to join the debate on several regulations under the Imports and Exports (Control) Act, No. 1 of 1969.

¶ 02 Opposition speeches on prices of dried fish, imported foods, and milk powder overlook who drove us to import what we can produce. Despite being an island with extensive inland water bodies, we became dependent on imported dried fish. Agriculture was undermined — first by arbitrary bans on agrochemicals without scientific basis, then by halting chemical fertilizer — crippling the sector.

¶ 03 We must transform to a production-based, self-reliant economy. In the midst of this transition, the Middle East war pushed oil prices up, creating external pressures. Nonetheless, to ensure food security and price stability, certain regulatory steps were needed. For example, around the New Year, there was a shortage of Keeri Samba due to lower output. Keeri Samba cultivation has lower yields and weaker disease resistance (e.g., to leaf blight), making its production costlier than other varieties; hence a higher farmgate price is warranted. We currently set higher procurement prices for Keeri Samba (e.g., Rs. 140/kg vs Rs. 130 for other varieties on a 5 kg basis), though even that may be insufficient given costs. We aim to improve farmer returns when fiscally possible.

¶ 04 To stabilize supply and prices, we temporarily allowed imports of varieties similar to Keeri Samba — specifically Ponni Samba (07511) from Andhra Pradesh and Tamil Nadu — under import licences until May, ensuring availability and preventing price spikes, while maintaining overall food security.

¶ 05 We inherited shortages of parboiled and Samba rice. We have since expanded budget allocations to the farm sector, moderated paddy price volatility, and reduced retail rice prices — e.g., parboiled red rice reduced from around Rs. 220/kg to Rs. 165–170/kg — and stabilized prices of many food items including potatoes, onions, and vegetables, reversing previous extreme fluctuations.

¶ 06 On regional agriculture: in Matara District, 12,000 acres were left uncultivated due to salinity intrusion at the Nilwala River and uncleared canals for decades. We cleared canals last year; salinity barriers improved water retention. Many farmers were unable to cultivate for years; we allocated Rs. 1,200 million for compensation, which will be paid on the 27th under the President’s patronage.

¶ 07 By supporting farmers and investing in agri-infrastructure, we will reduce imports of items we can produce — dairy, rice, and other foods — thereby saving dollars. While some imports like fuel are unavoidable, our self-reliance drive will ease the external constraint. We believe this is manageable and that we can advance without an economic crisis.

¶ 08 Thank you.