Sri Lanka to import the highest stock of rice in a decade

The failure of Sri Lanka’s green policy on agriculture which has led to a shortage of rice production has forced the authorities to import the largest stock of rice in a decade, officials revealed.

The Trade Ministry is now taking measures to import 300,000 metric tonnes of rice with cabinet approval granted in its first meeting this year, spending around US$ 134 million amidst a severe dollar crisis at present. An additional stock of 500,000 MT of rice will be imported via State Trading Corporation with the aim of maintaining the price of rice at the level Rs.105 per kilogram, Trade Minister Bandula Gunawardene said.

According to Central Bank statistics the country has imported the largest stock of 748,000 MT of rice at a cost of $301 million during 2011 to 2020.

The government will grant permission for local importers also to bring down rice as the Treasury has reduced the tax on rice to 25 cents from Rs. 5 per kilogram, the Trade Minister said.

Meanwhile around 500 containers of rice were still stuck at the Colombo board waiting for clearance due to dollar issues, he added. (Bandula)