Sri Lanka is on the brink of a worsening rice crisis as challenges in importing and pricing rice strain both traders and consumers. The All Ceylon Importers’ Association has expressed concern over the government’s policies, which have made it nearly impossible to sell imported rice at the controlled price of Rs. 220 per kilogram.
The issue stems from a tax of Rs. 65 imposed on every kilogram of imported rice, pushing the cost of importing Nadu rice to approximately Rs. 210 per kilo. With such slim margins, importers argue that adhering to the controlled price cap is unfeasible, particularly as operating costs and other market factors continue to climb.
Adding to the complexity, the government has limited the rice import window to December 20, a deadline importers say is impractical. Shipments leaving Indian ports on or after December 10 will struggle to arrive in Sri Lanka by the cutoff date. As a result, many importers are reluctant to proceed with rice imports, heightening fears of a severe rice shortage in the coming weeks.
Despite the government’s price control measures, Nadu rice is being sold for Rs. 250-255 per kilogram at key outlets like the Narahenpita Economic Center. Traders there cite higher purchase prices from wholesalers as the reason for exceeding the controlled rate. Compounding the issue, these centers enforce a minimum purchase requirement of 25 kilograms, further restricting access for individual consumers seeking smaller quantities.
Across the country, Lanka Sathosa branches are also struggling to meet demand. White raw rice imported from Pakistan is available at Rs. 210 per kilogram, but supplies are limited, and branches have imposed restrictions on the quantity sold per customer. For example, the Borella branch allows a maximum of five kilograms per individual, while other branches, such as Kolonnawa, permit up to ten kilograms. Employees at several Sathosa outlets report that Nadu rice is completely out of stock.
Meanwhile, paddy prices have surged, with red paddy reaching Rs. 170 per kilogram as of December 5. This increase is squeezing domestic rice production costs, further driving up retail prices. Analysts warn that without intervention, this trend could exacerbate the shortage and place additional strain on consumers already burdened by high inflation and economic challenges.
The rice crisis is unfolding against a backdrop of reduced domestic supply caused by adverse weather conditions, including widespread flooding during the Maha season. Many paddy fields have been severely damaged, leaving farmers unable to meet their expected yields. Compounding this, the government’s compensation mechanisms for affected farmers have been criticized as inadequate, with calls from agricultural experts to prioritize replanting instead of one-time financial payouts.
The Importers’ Association and market stakeholders have urged the government to take immediate action to stabilize the rice supply. Key recommendations include extending the import deadline, revising or waiving the Rs. 65 import tax, and ensuring a more streamlined import process to prevent further market disruptions.
Furthermore, the association has called for long-term measures, including strengthening the Paddy Marketing Board’s role in securing sufficient paddy during future harvest seasons and regulating the use of rice in non-food industries like beer production and animal feed.
Without swift government intervention, the current shortages risk spiraling into a full-blown crisis, with soaring prices making rice—a staple food in Sri Lanka—unaffordable for many households.
