🌾 Sri Lanka’s Agriculture Sector Needs Shift from Subsidies to Competitiveness

• Current State: Sri Lanka has achieved a rice surplus through 90 years of heavily subsidised policy, including nearly Rs. 40 Bn spent on fertiliser support for the 2025/26 Maha season alongside free/subsidised irrigation schemes. • Core Challenges: - Subsidies and state interventions have created an uncompetitive sector, leaving consumers facing high food prices due to import restrictions. - Farmers lack incentives to experiment with high-value crops, adopt new technology, or improve soil health and productivity. - Heavy concentration on rice limits international competitiveness against larger commercial global producers. • Policy Recommendations: - Reallocate public funds from permanent production subsidies to R&D, extension services, irrigation efficiency, storage, rural roads, and tech adoption. - Shift focus to high-value, sustainable crops suitable for both domestic consumption and export markets. - Provide targeted, temporary support to help farmers transition to viable crops without compromising food security.