Saudi Press

Saudi Arabia and the world
Tuesday, Jul 21, 2026

Sri Lanka urges farmers to plant more rice amid crisis

Sri Lanka urges farmers to plant more rice amid crisis

Sri Lanka is calling on farmers to grow more rice as it faces its worst economic crisis in more than 70 years.
The country's agriculture minister made the appeal as he said the country's "food situation is becoming worse".

It comes as severe shortages of essentials, including food, helped to push inflation, the rate at which prices rise, to a new record high.

Also on Tuesday, the government raised taxes to help pay for critical purchases, including fuel and food.

The island nation of 22 million people has been hit hard by the pandemic, rising energy prices, and populist tax cuts.

A chronic shortage of foreign currency and soaring inflation has also led to a shortage of medicines, fuel and other essentials.

Agriculture Minister Mahinda Amaraweera told journalists "it is clear the food situation is becoming worse".

"We request all farmers to step into their fields in the next five to ten days and cultivate paddy [rice]," he added.

Sri Lankan officials have been looking for ways to boost food production, as Prime Minister Ranil Wickremesinghe has warned of severe food shortages by August.

The country is also applying for assistance from a South Asian food bank, which has supplied rice and other goods to countries in need, the Financial Times newspaper reported.

Food commissioner J Krishnamoorthy told the newspaper in an interview that her department had "just started the process" of asking the South Asian Association for Regional Cooperation (SAARC) for "food bank assistance".

Krishnamoorthy added that Sri Lanka was seeking around 100,000 metric tonnes of food in the form of donations or subsidised sales.

The SAARC is a grouping of eight countries in South Asia. It includes Sri Lanka and India, which is emerging as one of Sri Lanka's biggest providers of aid.

Sri Lanka's Food Commissioners Department and the SAARC did not immediately respond to BBC requests for comment.

On Tuesday, the Sri Lankan government announced an immediate increase to value added tax (VAT) from 8% to 12%. The move is expected to boost government revenue by 65bn Sri Lankan rupees ($179.9m; £142.7m).

It also said corporate tax would rise in October from 24% to 30%.

Earlier this year, then-Sri Lankan financial minister Ali Sabry told the BBC that he saw a need to raise VAT.

He added that the nation needed $4bn (£3.2bn) over the next eight months to pay for imports of daily essentials.

Also on Tuesday, official figures showed that Sri Lanka's rate of inflation rose to a record 39.1% in May, from a year ago. It had reached a previous high of 29.8% in April.

Inflation reduces the purchasing power of money since more money is now needed to buy the same items.

High rates of inflation mean that unless income increases at the same rate, people are worse off. This may cause them to spend less as they make fewer purchases from businesses.

Last month, Sri Lanka defaulted on its debt for the first time in history, when grace period to come up with $78m of unpaid debt interest payments expired.

Defaults happen when governments are unable to meet some or all of their debt payments to creditors.

It can damage a country's reputation with investors, making it harder for it to borrow the money it needs on international markets, which can further harm confidence in its currency and economy.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Trump Draws Boos and Podium Scrutiny at Spain’s World Cup Triumph
Spain Defeats Argentina in Extra Time to Win Second World Cup
Turkey Explores S-400 Transfer to UAE in Bid to Rejoin F-35 Program
US Retaliates Against Iran After Two American Troops Killed in Jordan
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
Why Kentucky Fried Chicken Became KFC—and Why the False Explanations Persist
Iran Claims It Destroyed Bahrain’s Main Artificial Intelligence Center in Missile and Drone Strike
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
Reported CIA Mission Helped Clear the UAE’s Path to Advanced US AI Chips
Artificial Intelligence Capital Fuels Markets While Governments and Regulators Face Mounting Strategic Tests
China’s Moonshot’s Kimi K3 Narrows the Gap With Anthropic Through Scale, Openness and Lower Cost
Gold and Cash Seizure Puts Indonesia’s Senior Anti-Corruption Prosecutor Under Investigation
The Ledger Will Not Trust on Faith
Passenger Bound for Germany Refused to Sit Beside a Woman on a Plane — Then Slapped a Flight Attendant
Ukraine’s Leadership Rift Spills Into the Streets as Protesters Target Army Chief
The Ten World Cup Finals That Defined Football History
Smartphones Are Getting More Expensive, Sales Are Collapsing, and Even Apple Admits: "Prices Will Rise"
Leadership Change and Strategic Rivalry Redraw the Political Map
The AI Race Enters Its Infrastructure Era
Britain Nationalises British Steel to Protect Scunthorpe Production and Strategic Supply
Thomas Tuchel Faces Fierce Backlash After Tactical Retreat Costs England World Cup Final Berth
A Quiet Bastille Day: France Grapples with World Cup Heartbreak and Leftover Fireworks
Spain in Ecstasy: "We Feel Unbeatable, We Taught the Whole World a Lesson"
Harvard Astrophysicist to Lead U.S. Scientific Advisory on Unidentified Aerial Phenomena
Emergency Sirens Activated Across Bahrain as Interior Ministry Issues Shelter Directives
World Cup Visitors Turn American Big-Box Stores Into Souvenir Stops
Netflix Weighs Always-On Channels, Bundles and Short-Form Video
The AI Invoice Shock: Layoffs Didn't Save Managers Money — They Cost Them More
Concern: Sexually Transmitted Bacterium Among Men Develops Antibiotic Resistance
Passenger Partially Pulled Out of Ryanair Jet After Cabin Window Fails Mid-Flight
Severe Heatwave Drives Dangerous Ground-Level Ozone Pollution Across Two Thirds of European Union
The Physical and Electronic Barriers Disrupting Domestic Wireless Networks
France and Morocco Open World Cup Quarter-Finals as Collina Defends Refereeing
Tech Pulse: The Future of AI and Screen Culture
Global News Briefing: Escalating Geopolitical Tensions and Corporate Shakeups
Global News Brief: Escalating Conflicts, Public Health Crises, and World Cup Drama
Europe's Growing Struggle with Extreme Heat and Air Conditioning
Anthropic Reengineers Agentic Architecture to Shift Autonomous Workplace Automation to the Cloud
Logic Flaw in Windows 11 Permission Architecture Silently Consumes Hundreds of Gigabytes of Local Storage
Apple Advances Late-Stage Operating Systems with Fourth Beta Deployments
Global Crisis Alert: Escalating Middle East Tensions and UK Political Upheaval
Japanese Technology Firm Fujitsu Launches Advanced Artificial Intelligence Tool for Corporate Disclosures
South Africa Officially Launches Nationwide Campaign for Highly Contested Local Government Elections
United Kingdom Commits Additional Funding for Unexploded Ordnance Clearance in Laos
Singapore Announces Stringent New Greenhouse Gas Regulations for Commercial Cooling Systems
Cambodia and Thailand Hold High-Level Border Security Talks at United Nations Headquarters
Myanmar Military Government and China Sign Major Agreement to Upgrade Media and Cultural Cooperation
Knife Attack at Swiss Train Station Leaves Three Injured in Suspected Act of Domestic Terrorism
Transnational Extortion Gang Threatens Canadian Police With Army of One Thousand Armed Operatives
×