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Tamil women protesting against the rising price of rice earlier this year.
Sri Lanka’s newly installed government, led by Anura Kumara Dissanayake, has reversed its pre-election stance on rice imports, confirming plans to bring in 70,000 metric tonnes of rice to address market shortages. The announcement, made by Minister of Trade, Commerce, Food Security, and Cooperative Development Wasantha Samarasinghe, comes after weeks of assurances that the country would not need to import rice.
Speaking last month in Trincomalee, Sri Lanka's president Dissanayake declared that the nation was facing an “artificially created shortage” of rice, placing the blame on rice mill owners. He emphasized that the government was prepared to enforce legal measures against those unwilling to cooperate.
"Yesterday, I met with the major rice mill owners in Sri Lanka. There is no rice shortage in the country. What we are witnessing is an artificially created shortage," he stated. Dissanayake reiterated his commitment to self-reliance, saying, "We will not import a single grain of rice except for what is needed for the tourism industry. You must cultivate." Similar remarks were made during a rally in Polonnaruwa, where Dissanayake reiterated that any stock issues in local markets were localized rather than indicative of a nationwide crisis.
However, the latest announcement from Samarasinghe indicates a stark policy shift. Addressing reporters, Samarasinghe explained, “Even though there was a surplus rice production in the country this year when you go to the market, there is no rice. The farmer has no paddy, and the consumer has no rice. The best decision we can take in this situation is to import rice to meet the demand.”
The import will reportedly be handled by two state agencies, Sathosa and the State Trading Corporation, aiming to mitigate the shortfall of parboiled rice (nadu), which analysts attribute to price controls discouraging its cultivation.
Rice shortages have become a recurring issue in Sri Lanka, with analysts pointing to price controls as a key factor. By keeping the price of parboiled rice equivalent to red rice, demand outpaced supply, creating imbalances. Import duties on rice are currently set at 65 rupees per kilogram (approximately USD 200 per tonne), significantly lower than the USD 530 per tonne market rate for similar varieties.
The move to import rice directly contradicts President Dissanayake’s pre-election pledges, which centred on agricultural self-sufficiency. While Dissanayake initially positioned rice mill owners as the main culprits for market disruptions, Minister Samarasinghe’s remarks suggest deeper structural issues in the agricultural and market systems. This policy reversal highlights the challenges facing the Dissanayake administration as it balances pre-election promises with economic realities.