Facing a sharp economic and humanitarian crisis, Sri Lanka ended its ill-conceived experiment in organic farming this winter. In his 2019 election campaign, the President of Sri Lanka promised that the country's farmers would transition to organic farming within 10 years. In April of last year, the President's government fulfilled this promise by introducing a nationwide ban on the import and use of synthetic fertilisers and pesticides, ordering 2 million of the country's farmers to switch to organic farming.
The result was severe and swift. Contrary to claims that organic methods could yield harvests comparable to traditional farming, national rice production fell by 20% in the first six months alone. Sri Lanka, which had long been self-sufficient in rice production, was forced to import rice worth USD 450 million even as domestic rice prices rose by approximately 50%. The ban also devastated the country's tea industry, which is Sri Lanka's primary source of exports and foreign currency.
By November 2021, as tea production declined, the government partially lifted the fertiliser ban for key export crops, including tea, rubber, and coconuts. Facing fierce protests, soaring inflation, and the collapse of the Sri Lankan currency, the government finally abandoned this policy for several key crops in April, including tea, rubber, and coconuts, although it remains in force for some other crops. The government is also offering farmers USD 200 million in direct compensation and another USD 149 million in price subsidies for rice growers who have suffered losses. This is unlikely to compensate for the losses and the massive problems caused by the ban. Farmers have been sharply critical of these payments, as they are inadequate and have "excluded" many farmers, particularly tea producers, who are one of the main sources of employment in rural Sri Lanka. It is estimated that the decline in tea production alone has caused economic losses of USD 425 million.
The human costs are even greater. Before the outbreak of the C19 pandemic, the country had reached a middle-income level. Today, half a million people have fallen back into poverty. Soaring inflation and a rapidly depreciating currency have forced Sri Lankans to cut back on food and fuel as prices skyrocket. The country's economists have called on the government to suspend debt repayments in order to purchase essential goods for the population. (...)



