By Nishat Shuja

Subsequently, nearly two months of insecurity and chaos, Sri Lankan parliamentarians have now reached an agreement on the political management of the country, with new Prime Minister endeavoring to form a multi-party government.

On Friday, nine new cabinet ministers from different parties were sworn in before President. The new ministries are Ports, Shipping and Aviation Services, Education, Health, Justice, Prisons Affairs and Constitutional Reforms Tourism and Lands Plantation Industries, Labor and Foreign Employment, Trade, Commerce and Food Security, Public Security.

At the moment, Sri Lanka’s 21 million people are to facing a grave an unparalleled food shortage and upward anarchy and mayhem incited by radical groups manipulating the people’s grievances over shortages of fuel, food and high prices of essential commodities.

There are reports from many parts of Colombo about mobs, led by local thugs and alleged members racial preventing buses and stopping people from going to work. As the government still undecided on how to tackle public protests, the police is unable to stand before the disruptive elements which are imposing their will on miserable citizens wanting to go to work to support their families living under grim circumstances.

Although there is a State of Emergency which allows the government to call in the army to aid civil power, the issue is considered to be too sensitive in the current politically charged atmosphere.

Meanwhile the Government Medical Officers Association has threatened to go on strike if a salary cut is ordered. This will only add to the misery of patients who are already facing a shortage of essential drugs in the hospitals and the market. The government doctors had threatened to strikes over salary cuts even as the Prime Minister told parliament that his cabinet will relinquish salaries and other perks.

On May 9 the burning of buses by agitators had caused a loss of SLR 400 million (US$ 1.1 million). The one day Island strike cost Sri Lanka US$ 22 million in exports. Sri Lanka imports buses from India but the serviceable foreign exchange in the country amounts to only US$ 50 million.

On Thursday, in a speech in parliament, Prime Minister warned people to face food shortages in the coming months and said the Cabinet has discussed a program to commence food cultivation to cover all areas of the country. He said food scarcity is already affecting people, particularly in the Colombo District, and that prompt action must be taken to provide them with relief.

The Prime Minister said that unused State land will be allocated for the purpose and recalled that US Treasury Secretary had said that Sri Lanka has been identified prone to famine along with Afghanistan as a country that will need food assistance.

The “International Food Initiative’s (IFI) Action Plan to Address Food Insecurity” developed by the Asian Development Bank (ADB), World Bank (WB) and numerous other multifaceted and United Nations agencies, foresees the spending of billions of dollars on supporting farmers.

However, while Sri Lanka receives international assistance, the country will have to prepare to ensure food security for all and there must be sound steps to provide adequate nourishment to farmers for the next “Maha” harvesting season.

According to the International Trade Administration, the agriculture sector contributes about 7.4 % of Sri Lanka’s GDP, out of which, the fisheries sector contributes around 1.3% and the livestock sector accounts for 0.9%. Over 30% of Sri Lankans are employed in the agricultural sector.

Although Sri Lanka is a fertile tropical land with the potential for the cultivation and processing of a variety of crops, issues such as productivity and profitability hamper the growth of the sector. There is a lack of private investment in agriculture due to uncertain policies,” ITA said.

Sri Lanka depends substantially on food imports. The importation of food and beverages accounted for 9.7% of total imports in 2020 with total agriculture, food, and beverage imports reaching $1.6 billion, ITA added.

The overnight ban on chemical fertilizers in 2021, in the midst of the pandemic, hit Sri Lankan farmers below the belt. It severely curtailed production. According to Nikkei Asia, this year’s Maha season which ended in March, was to see 30% less production less than the normal yield of 3.2 million tons.

A kilogram of tomatoes that sold for 149 Sri Lankan rupees (80 cents) in December 2020 was going for 463 rupees a year later. Similar spikes are mirrored in the prices for green chilies, garlic, onions and coconuts essentials for spicy dishes that accompany increasingly expensive Sri Lankan short-grain rice,” Nikkei Asia noted. Food inflation rose to 21%.

The World Bank has said that at $3.20 per day as the poverty threshold for Sri Lanka. By this yardstick 500,000 more people had fallen into poverty, with the majority in rural areas, where 92% of the poor live. The current estimate of the number of poor in Sri Lanka is 2.56 million out of 21 million.

On Thursday, the downgrade commenced at a time when the Central Bank Governor acknowledged that Sri Lanka won’t be able to pay back its debts until it restructures them. Sri Lanka sovereign rating has been downgraded due to debt-ridden after the country defaulted on making international sovereign bond payments at the end of the 30-day grace period.