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Developing Sri Lankan economy fast, learning from the past

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We have little say about restrictions being imposed on us from abroad. Somehow, we have to stand on our feet. In the distant past we did have programs that tackled poverty and enabled people to produce what we need. However today no attempt is being made to help people to become entrepreneurs, to produce what Sri Lanka requires, and in that process earn foreign exchange and also help reduce imports.

This economic demise has been a process that commenced after 1977, when we started following the Structural Adjustment Program of the International Monetary Fund (IMF). A condition insisted upon was that all development programmes had to be curtailed or abolished. There should be no new programs of development. Truly from 1977 there has not been a single new development program.

All that has been approved are of the Samurdhi and Aswesuma type of making donations to the poor. Departments that dealt with economic development were either abolished or sidelined.

During Prime Minister Dudley Senanayake’s tenure we were self-sufficient in rice. I too played a part in that cultivation programme and have first-hand experience as I served as the Additional Government Agent in Kegalle in 1968 and 1969.

Paddy production is of crucial importance because we have had to import very large quantities of rice almost every year recently, spending a great deal of foreign exchange. Paddy production was handled by the Department of Agriculture for long. They had a full staff at district level, an agricultural instructor with two years training at the divisional level, and at the village level, an agricultural overseer with a year’s training.

That effort was strengthened with the implementation of the Paddy Lands Act by the Agrarian Services Department, which for the first time brought about an elected body of cultivators and land owners that planned paddy production.

In Anuradhapura, we had 296 cultivation committees and there was a staff of three Assistant Commissioners, 10 Divisional Officers and 50 Field Assistants. I can remember meetings of cultivators going on till late in the night and we decided on using certified high yielding seed paddy and the appropriate use of fertilizer. This effort was well organized.

Prime Minister Dudley Senanayake (1965-1970) took over the implementation of paddy production and brought in the Government Agents to lead the programme in each district. The production of paddy had been assessed by the Department of Agriculture. Dudley was not satisfied with that systems and decided that the yield of paddy be estimated by staff officers of departments other than the Department of Agriculture, and also done on a plot identified by random sampling. Thus, the production was correctly estimated. As a result of this effort, we achieved self-sufficiency in rice.

After 1970 the Government Agents were to concentrate on the new programme – the Divisional Development Councils Programme (DDCP) and paddy production was given less emphasis. The system of crop cuttings done by staff officers of department other than the Department of Agriculture was stopped.

The government had from the fifties a paddy purchasing programme where a high price was given to genuine cultivators. This was discontinued. Two more changes took place and the Department of Agrarian Services was more or less abolished and the Agriculture Department paddy production programme was scaled down by President Premadasa promoting all agricultural overseers – numbering some 2,300 – to become Grama Niladharis in 1997.

The work done by agricultural overseers ceased and a few years later a cadre of untrained Yaya Palakas were appointed. Thus, today the paddy production effort is totally unorganized. Many seed farms were privatized and thus no certified seed paddy is available. It is no wonder that we have had to import rice and unless a definite plan to bolster paddy production is built from scratch, Sri Lanka will have to import very large quantities of rice every year.

The introduction of Provincial Councils and devolving agriculture to them has also eaten into efficiency. Earlier a circular by me, when I worked in the Agrarian Services Department, sent by post to all overseers had to be acted upon the next day, after devolving agriculture to the provincial councils the instructions had to be sent via Divisional Ministers of Agriculture.

The production of vegetables and fruit is also unorganized because the Department of Agriculture does not have a field officer – the agricultural overseer – at the village level which it had till 1997.

From the days of World War II, a Marketing Department – a Department for the Development of Agricultural Marketing – was established to help the marketing of agricultural produce. This department was abolished in 1977, with the country implementing the Structural Adjustment Programme of the IMF.

Today all producers are at the mercy of traders. When the Marketing Department functioned producers could hand over vegetables and fruit to the Marketing Department. Then vegetables and fruit were purchased and sent to Tripoli Market , the headquarters of the program, where goods were sent to some 50 outlets in Colombo for sale at low prices.

This made traders too to sell at low prices if they were to be in business. The aim of the Marketing Department was to offer high prices to producers as well as sell at low prices to city dwellers. The abolition of the Marketing Department happened in 1981. It may be a good idea to reestablish the department

Aswesuma, the poverty alleviation programme of today that gives money to the poor and deprived people, is only a continuation of the Samurdhi and the Janasaviya Programmes of public assistance. Janasaviya included training of beneficiaries to become productive as an integral part. This programme unfortunately folded with the demise of President Premadasa. Samurdhi too made an attempt at training people but the attempt was a failure. If Aswesuma is to be a success it should include a program to train the recipients to become entrepreneurs – thus producing what the country needs.

Sri Lanka is a country blessed with fertile soil and ample regular rainfall, which enables the production of paddy and other crops. We had the organization for handling production, which has been dismantled by reducing the staff of the Department of Agriculture, the almost total abolition of the Department of Agrarian Services and the abolition of the Marketing Department.

For instance, the Marketing Department established a canning factory in 1955 and in three years by 1958, we became self-sufficient in all fruit drinks and fruit produce Today, unfortunately we depend on imported fruit and fruit drinks imported from countries ranging from India, Cyprus and the USA. There goes our foreign exchange In dairy produce too we depend on imports. We do not have a real program to develop animal husbandry. We must expand the number of veterinary surgeons and implement a program for people to rear cattle.

In industry too, we were till 1977 having a well-developed programme of handlooms and power looms that enabled us to be self-sufficient in manufacturing textiles. In 1977 we abolished this programme and the Department of Small Industries was totally eliminated. Until 1977, we met all our textile requirements.

Sri Lankans who had migrated to the UK when they visited Sri Lanka on holiday came searching for suiting produced by the Hakmana Powerloom. When they could not find Hakmana suiting in the shops they came to the Hakmana Powerloom and when they found that too difficult, approached me – as the Government Agent who controlled the Powerlooms.

In 1958 I was working in Ambalantota and my duties took me often to Weerawila where during the cropping season the air was full of cotton pollen wafting in the air. Sadly, we gave up cultivating cotton. Three large stores built for collecting cotton were taken over by me for storing paddy. Cotton can be grown in Hambantota and Mannar/Vavuniya areas.

Under the Divisional Development Councils Programme of Prime Minister Sirimavo Bandaranaike (1970-1976) we established many small industries all over the island. Special mention is due of the paper making at Kotmale ,and the boat making industry at Matara where we made seagoing boats and sold them to fisheries cooperatives,

At Matara on our own, we established a crayon factory . It took three months for my Planning Officer, Vetus Fernando, a chemistry honours graduate to master the art of making a crayon of a standard equal to Reeves, the best of the day. It took two weeks for Sumanapala Dahanayake, the member of parliament for Deniyaya, in his capacity as the President of the Co-op Union to establish a crayon factory under my immediate direction. Within a month crayons made by the Morawaka Cooperative Union were sold islandwide.

Therein lies the path if our Government of President Anura Kumara Dissanayake is interested in developing industries in Sri Lanka. It is a task that can be easily achieved. We can establish many industries to manufacture some of what we import today.

I can state that Sri Lanka can produce all the rice, maize, fruit and vegetables it requires – all items that can be cultivated and harvested within one year. When I served as Assistant Commissioner of Agrarian Services in Anuradhapura, I asked for approval to produce all the maize Sri Lanka required in one season. We had vibrant cultivation committees to handle that task. Fruits like oranges will require a longer program. Let us not forget that we have a fertile land with ample regular rain.

Let me end with a bit of what I achieved in Bangladesh in creating entrepreneurs. I served there as the Commonwealth Fund Advisor on Youth Development. When General Ershard took over the country it was widely feared that the youth development activities would be abolished. At the final meeting the minister asked for my recommendation. I urged that instead of abolishing the Ministry, the Government should establish a youth employment program.

The Secretary to the Treasury, the highest officer in Bangladesh, said that he would not release any funds because the ILO had failed to do that task at Tangail in the earlier three years. I argued with him – a one to one battle for two hours. The minister stopped us arguing and approved my establishing an employment creation program. This was done in 19 months and that was in 1983.

It is a programme that has by now made over three million youth entrepreneurs. It has been documented in eight pages in the Five-Year Programme of Bangladesh and is continuing.

In 2011,when Milinda Moragoda, who was our High Commissioner in Delhi made a bid for the Mayoralty of Colombo, in his manifesto stated that if elected, he would seek to implement the Youth Self Employment Program of Bangladesh which incidentally was am amazingly successful scheme introduced to that country by a distinguished son of Sri Lanka, Dr Garvin Karunaratne, who served in Bangladesh as an international consultant.”(The Nation: 11/9/2011)

I hope I have had the opportunity to awaken our new Government of President Anura Kumara Dissanayake. (The writer is former Government Agent for Matara)

by Dr. Garvin Karunaratne
garvin.karunaratne@hotmail.com ✍️



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Features

Sri Lanka’s rice conundrum: Time to stop managing crises and start fixing the system

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Prof. Ranjith Senaratne,
Emeritus Professor in Crop Science and former Vice-Chancellor,
University of Ruhuna and General President of the Sri Lanka Association for the Advancement of Science (2023) and
Prof. Prasad Jayaweera,
Dean, Faculty of Computing, University of Sri Jayawardenapura

Rice is not merely another crop in Sri Lanka. It is our staple food, an integral part of our history and culture, and a foundation of the civilisation that flourished around our ancient hydraulic systems. Revered as Buddha Bhogaya, the Buddha’s crop, rice has sustained our people for more than two millennia. Yet, remarkably, a country with such a profound relationship with rice continues to lurch from one rice crisis to another.

At one time, we have a surplus. At another, we face shortages. Prices rise sharply, consumers complain, farmers struggle to obtain remunerative prices, millers and traders become the focus of public attention, imports are hurriedly arranged, and governments announce yet another set of measures to contain the crisis. Then, after the immediate problem subsides, the matter recedes from the national agenda, until the next crisis arrives.

Why does this keep happening despite decades of agricultural research, policy interventions, expert committees and public debate?

Perhaps because we have been asking the wrong question. The fundamental problem is not simply how to produce more rice. Nor is it merely a question of prices, imports, fertiliser, farmers, millers or markets. The rice conundrum is a complex national systems problem.

We cannot solve a system by fixing its parts in isolation

Sri Lanka’s rice sector is an intricate web of interconnected systems involving agriculture, land, water, climate, technology, finance, energy, transport, markets, trade, governance, institutions and consumer behaviour. A decision made in one part of this system can have consequences, sometimes unintended, in another.

A change in fertiliser policy, for example, can affect productivity and production costs, which in turn influence farmer profitability, market prices and the need for imports. Irrigation decisions affect not only production, but also water availability, energy use and environmental sustainability. Guaranteed prices influence farmers’ cropping decisions, while import policies can simultaneously protect consumers and weaken incentives for domestic production. Likewise, market concentration can affect both the price received by farmers and the price paid by consumers. This is precisely why isolated interventions so often produce disappointing results. We keep treating symptoms while leaving the underlying system largely untouched.

For decades, we have generated valuable scientific knowledge on individual aspects of rice production and marketing. But knowledge generated within disciplinary and institutional silos does not automatically translate into solutions to complex real-world problems. What is needed now is a fundamentally different way of thinking.

From a “rice crop” to a “rice system”

The first step is to stop looking at rice simply as something that is grown in a paddy field.

The rice system begins with land, water, seed, inputs, technology and finance. It extends through cultivation, harvesting, drying, milling, storage, transport, wholesale and retail marketing, and finally to the consumer’s table. At every stage, there are different interests, incentives, constraints and actors: farmers, farmer organisations, input suppliers, machinery operators, millers, traders, wholesalers, retailers, financial institutions, government agencies, researchers and consumers.

And hovering over the entire system are climate change, changing consumer preferences, technological transformation and national economic conditions. A weakness anywhere in this chain can compromise the performance of the whole system.

Consider post-harvest losses. If significant quantities of rice are lost because of inadequate drying, storage or processing facilities, increasing production alone cannot solve the problem. Similarly, if farmers produce efficiently but face weak markets and poor bargaining power, productivity gains may not translate into improved livelihoods.

The question, therefore, should not be “How much rice can we produce?” but “How can we make the entire rice system work better?”

That requires us to see the connections.

The missing ingredient: reliable, real-time information

There is another fundamental weakness that deserves urgent attention: we still lack a comprehensive, integrated, interoperable and reliable national information system for rice. Information is scattered among different institutions, often collected using different methodologies and not necessarily available when decisions need to be made.

How much rice will actually be produced? How much is in storage? What is the likely demand? Where are the emerging production shortfalls? What are the stocks held by different actors? How are prices moving along the value chain? What are the likely consequences of climate conditions? Without timely and reliable answers to such questions, policymakers are forced to make critical decisions with incomplete information. This is not merely an administrative inconvenience. It is a national food-security vulnerability.

Sri Lanka should therefore seriously consider establishing a National Rice Intelligence and Decision Support System (NRIDSS), an integrated digital platform that brings together relevant real-time information from agriculture, meteorology, irrigation, markets, trade, statistics and other institutions. Such a system could support production forecasting, market monitoring, import decisions, early warning and evidence-based policy formulation. In an increasingly uncertain climate and volatile global economy, this should no longer be regarded as a luxury. It is becoming an essential component of national food-system governance.

The deeper problems cannot be ignored

A systems approach would also force us to confront some uncomfortable structural realities. Why does productivity remain relatively low despite decades of research? Why are so many holdings too small to achieve economies of scale? Why are modern technologies and precision agriculture not being adopted more rapidly? Why do farmers often have limited bargaining power? Why do substantial losses occur after harvesting? Why can market power become concentrated in a relatively small number of actors? Why are guaranteed prices sometimes announced too late to influence farmers’ production decisions? Why are policy interventions so often reactive rather than proactive? And how will droughts, floods, temperature extremes, changing rainfall patterns and emerging pests affect the stability of rice production in the years ahead? These are not separate questions. They are parts of the same system.

From crisis management to systems governance

Sri Lanka does not need another isolated discussion about rice. What is needed is a national policy dialogue and action forum that brings all relevant actors together, not merely to exchange speeches, but to develop a shared understanding of the system and agree on what needs to be done. Such collaboration must go beyond consultation or the exchange of views. The different parties need to work together from problem definition through to implementation, bringing their diverse knowledge, perspectives, interests and practical experience into a common process.

Farmers bring contextual and experiential knowledge; industry actors understand market realities and operational constraints; scientists contribute evidence and analytical capabilities; policymakers bring institutional and regulatory perspectives; while technology and data specialists can provide new tools for understanding and managing the system. When these different perspectives are brought together systematically, they can reveal interdependencies, challenge assumptions, identify feasible interventions and generate solutions that are evidence-based, practically implementable and socially acceptable.

This is the essence of a transdisciplinary systems approach: not simply working across disciplines, but bringing together multiple stakeholders and multiple forms of knowledge to co-create solutions and share responsibility for outcomes. The process should therefore go beyond presentations and speeches. It should involve systems mapping, causal analysis, stakeholder dialogue, scenario planning and the participatory identification of the critical bottlenecks and leverage points in the rice system. Most importantly, it should distinguish between what is urgent and what is important, and between interventions that merely alleviate symptoms and those capable of changing the underlying behaviour of the system itself.

We need an implementation roadmap, not another report

There is, however, one important caveat. Sri Lanka has no shortage of reports, recommendations and policy documents. What we often lack is sustained implementation. Any national initiative on the rice conundrum must therefore end not with another set of broad recommendations but with a prioritised national action roadmap. It should identify short-, medium- and long-term actions, assign institutional responsibilities, establish timelines and define measurable indicators of progress. The ultimate objective should be to move Sri Lanka from reactive crisis management to proactive systems governance.

A national opportunity

The rice conundrum may, in fact, provide Sri Lanka with an opportunity that extends well beyond rice to deal with other important crops. If we can demonstrate that a complex national problem can be addressed by bringing together science, policy, stakeholder knowledge, real-time information and systems thinking, the approach could become a model for addressing other persistent challenges, from climate resilience and water security to energy, food systems and disaster risk.

The choice before us is therefore quite stark. We can continue responding to each rice crisis as it emerges, adjusting prices, arranging imports, appealing to millers, reassuring consumers and supporting farmers, only to repeat the cycle later. Or we can step back and ask a more fundamental question:

What is it about the way our rice system is structured and governed that continually produces these crises?

That is the question that needs to be answered. Sri Lanka has the scientific expertise, institutional capacity and stakeholder knowledge required to do so. What is needed now is the willingness to bring these fragmented sources of knowledge together and examine the rice sector as one interconnected system.

Our ancient civilisation understood the importance of interconnectedness: land, water, agriculture and society were organised as parts of a larger whole. Perhaps, in confronting the modern rice conundrum, we need to rediscover that systems wisdom, this time supported by modern science, technology, real-time data and transdisciplinary thinking. The time has come to stop merely managing the rice crisis. It is time to fix the system that keeps producing it.

It is against this backdrop that the Sri Lanka Association for the Advancement of Science (SLAAS) proposes to convene shortly a “National Policy Dialogue and Action Forum on the Rice Conundrum in Sri Lanka”, bringing together the key stakeholders across the rice system. The Forum is intended to provide a platform for moving beyond piecemeal and reactive interventions towards a coordinated, evidence-based and transdisciplinary systems approach, one capable of generating lasting and pragmatic solutions to what has become an “island-shaking national issue”.

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This curse of partisan politics in Sri Lanka

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78 Years of Demagoguery, Not Democracy

by Brigadier Ranjan de Silva
rpcdesilva@gmail.com

On the 4th of February every year, we raise the lion flag and speak of democracy. We speak of 78 years of “self-rule.” But honesty demands we ask: what kind of rule have we actually had? It was not democracy. Democracy is government for the common good, constrained by law, informed by reason, and accountable to truth.

What Sri Lanka has had for 78 years is demagoguery — government by manipulation, by party, and by passion.

Defining the Curse:

The dictionary defines demagoguery as “political activity that seeks support by appealing to the desires and prejudices of ordinary people rather than by rational argument.” Its tools are simple: divide the people, promise the impossible, demonize the opponent, and govern for the next election, not the next generation. That is the political culture we inherited in 1948 and perfected since.

78 Years of Evidence:

The record is not ambiguous. Policy by Pendulum – 1948–2024. Instead of a national development plan, we got a partisan wrecking ball. 1956: The “Sinhala Only Act” was passed not after linguistic study, but as an election mobilization tool. 1970-77: The SLFP nationalized private enterprise and imposed import controls. 1977: The UNP reversed course with an open economy overnight. 2005-2014: Mega infrastructure was built on Chinese loans with no feasibility transparency. 2015-2019: Those same projects were called “white elephants” and stalled. 2020-2021: The organic fertilizer ban was announced as a populist “green” policy, reversed 6 months later after it collapsed agriculture and food prices. The Colombo Port City, Hambantota Port, and the Central Expressway all followed the same pattern: started, stopped, rebranded. The country pays twice. The party takes credit once. Economics as Election Candy. Demagoguery is expensive. 1960s: Subsidized rice to win rural votes, leading to the 1971 food crisis.

2005-2014:

Fuel subsidies and public sector hiring sprees that doubled the wage bill. 2019:

Unfunded tax cuts that removed Rs. 500 billion in annual revenue with no offset. By April 2022, external debt hit $51 Billion and we defaulted for the first time. The party that cut taxes was not in power to manage the IMF program. The party that inherited it was blamed for the austerity. This is the cycle. Institutions captured. A democracy needs referees. We turned them into party cadres. The 17th Amendment 2001 created independent commissions. The 18th Amendment 2010 abolished them. The 19th 2015 restored them. The 20th 2020 gutted them again. Police transfers, university vice-chancellors, and state bank chairmen have all been decided by party headquarters, not merit.

When the institution serves the party, the citizen gets leftovers.

Identity over Ideas: From 1956 to 1983 to 2009 to 2022, our elections have been won on fear, not spreadsheets. “They will erase your language.” “They will sell the country.” “Only we can protect Buddhism/the minorities/the nation.”

Rational debate on debt, productivity, or climate adaptation never wins a rally. Prejudice does. That is demagoguery by definition.

Party Interest subverted the National Interest. The core damage of 78 years of partisan politics is this: the nation became secondary to the party. Need power sector reform? Impossible, because our unions will strike. Need to cut 300,000 ghost employees? Impossible, because our voters will defect. Need a 20-year education and export plan? Impossible, because it won’t show results before the next election. So, we borrowed. We patched. We lied. The result: a railway system that still runs on 1950s engines, hospitals without paracetamol in 2022, and a brain drain of 300,000+ skilled workers since the crisis. The parties rotated. The country declined.

The Opposition’s Original Sin and here, all parties share guilt equally. In opposition, the job is not to govern. It is to destroy. The UNP in the 60s called the SLFP “communist.” The SLFP in the 70s called the UNP “imperialist.” The JVP called both “traitors.” The SJB, SLPP, and NPP today use the same script with new logos. Every tax is “anti-people.” Every reform is “a sell-out.” Every crisis is proof the other side is evil and must be removed at any cost. Then they win. And implement 80% of what they opposed. Because demagoguery has no principles, only positions. 78 years of unmerciful, bad-faith criticism has not produced accountability. It has produced cynicism. The public now believes all politicians are the same — because for 78 years, they have behaved the same.

Breaking the Curse:

Changing the party in power will not end this. We must change the incentives that reward demagoguery. Three reforms are non-negotiable: Bind future Parliaments to national policy. Pass 10-year frameworks for energy, education, and public debt with 2/3 majority protection. Infrastructure and fiscal rules should outlast one government, as they do in Chile and New Zealand. Depoliticize the state. Independent commissions for police, elections, public service, and bribery must have constitutional budgets and appointment panels that exclude MPs. No more 18th/20th Amendment style rollbacks. Demand better from voters We must stop rewarding the best slogan and start demanding the best spreadsheet. Town halls over rallies. Costings over promises. A 5-year plan over a 5-minute speech.

In 1948, we did not inherit democracy. We inherited an election. For 78 years we have used that election to choose our favourite demagogue. The prize has been debt, division, and decay. The curse of partisan politics will only end when citizens and leaders agree on one principle: Party second. Country first. Until then, February 4th will remain a ceremony, not a celebration.

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Developing markets for fruits, vegetables and flowers in the Gulf

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Image courtesy Export Development Board)

Export diversification – Missing the wood for the trees – Part II

by Gomi Senadhira

Sri Lanka established its diplomatic presence in the Gulf region only in the early 1980s. First, a small embassy was opened in Abu Dhabi, covering the UAE. Then in 1982, embassies were opened in Jeddah and Kuwait. The embassy in Jeddah covered Saudi Arabia while Kuwait was responsible for Kuwait, Oman, Qatar and Bahrain. Commercial Diplomats were also assigned to these two embassies. A senior private sector executive, with experience in marketing, was posted to Jedda as the commercial counsellor. I was posted to Kuwait as a second secretary (Commercial). Our instructions were very clear. Focus not only on traditional exports. Product diversification was a priority.

Developing Markets for Agricultural Products

At that time, Minister Lalith Athulathmudali had just launched his Export Production Villages (EPV) programme. He believed that the EPVs working closely with the exporters would provide an ideal opportunity for rural households to directly benefit from the government’s new open trade policy. Agricultural products, particularly fruits and vegetables, were a key component of this approach and the ministry thought that the Gulf countries, with large Sri Lankan communities, would have a ready-made market for these items. Thus, from day one we were compelled to explore the market for nontraditional exports; fruits and vegetables (F&Vs) were on the top of our priority list.

From cane baskets to cardboard boxes

Fortunately, the market for the F&Vs products in the region was at a very early stage of development. That provided an opportunity for Sri Lankan exporters, who were also inexperienced, to work with the importers and grow together. For example, in Kuwait, one of our first customers for F&Vs was a small supermarket where the manager was a Sri Lankan. After the first shipment arrived, he invited me to inspect the shipment. I visited the supermarket and was shocked by what I saw. While produce from other countries was packed nicely in cardboard boxes, our packaging mirrored transport to Manning market, cane baskets! As a result, fresh produce had suffered significant damage. A long report, with photographs, to the trade ministry produced an immediate response. After all, this was a pet project of the Minister. Within weeks, shipments were packed in cardboard boxes. Immediately afterwards, an expert on packaging from the Commonwealth Secretariat was sent to Kuwait with an official from the EDB to study the problem.

By then, we had also managed to develop a friendship with the management of the Salmiya supermarket, a large upmarket supermarket patronised by wealthy Kuwaitis and expats. It was a cooperative and the chairman was a Kuwaiti public servant. I could only meet him after 6 PM when his large office functioned as a diwaniya, a cherished cultural space in Kuwaiti society. Guests moved in and out the room. I had to spend time with them sipping many cups of tea. Though that meant at least two hours on each visit, it helped greatly to develop a close relationship. The general manager was an efficient and friendly Palestinian. After many visits we had succeeded in getting an order for F&Vs. The day after the first shipment arrived, I got an urgent call from the GM to come and inspect it. Once again, I was in for a surprise. Inside the cold room, the consignments from other countries were stacked neatly on top of each other, while vegetable boxes from Sri Lanka had collapsed once placed on top of each other, crushing the produce within.

Fortunately, our packaging experts arrived in Kuwait soon after this incident. They spent two days in the Salmiya Supermarket, studying the packaging from other origins. We were also successful in assuring the GM our packaging would improve. After that, packaging improved and exports moved smoothly. With that, Sri Lanka emerged as a small but reliable supplier to the mainstream market, not just the ethnic segment of the market.

Export of Fresh Vegetables by Sea

Towards the end of my tour, a Sri Lankan businessman requested me to find a buyer for cabbages, which he was prepared to export in large quantities by sea. I introduced him to the largest fruit and vegetable importer in Kuwait. Their regular suppliers of similar vegetables were Jordan, Lebanon and Syria. Luckily, the company was keen to diversify the supply sources. A few weeks later, the first container load of cabbages from Sri Lanka arrived in Kuwait. Immediately after the arrival of the container, I visited the company. They were pleased with the quality and the price and were looking forward to importing more fruits and vegetables. Unfortunately, that turned out to be a one-off event. Later on, when I was back in Sri Lanka, the exporter informed me that he couldn’t continue with it due to the problems with the local supply chains.

Floriculture

During the period I was asked by the EDB to explore the market for floricultural products, more particularly for cut flowers. At that time Kuwait was a relatively large importer of cut flowers and live plants. The main suppliers were the Netherlands and Colombia. Importers were also reluctant to move out of the established supply chain, particularly due to “snob value” associated with the product from Europe. However, after some difficulties, one importer agreed to place a pre-paid trial order. After the arrival of that shipment, he was impressed by the quality of the product and the orders expanded rapidly. As a result, by the end of 1985 Kuwait had become a major buyer of Sri Lanka’s floricultural products.

From village to global markets

As a result of the proactive promotional work undertaken by the EDB and the embassies in the region, by 1985, Sri Lanka had managed to acquire a small but significant share of the F&V and floriculture markets in the GCC countries. We had also identified domestic supply chain issues that hindered exports. All that was done, long before Southeast Asian or African countries even entered into that market. In fact, my Southeast Asian colleagues used to contact me often to reserve “durian” for them at the “Sri Lankan supermarket”.

Most importantly, a substantially large share of produce from Sri Lanka in Kuwaiti supermarkets originated in the EPVs. Of course, that didn’t just happen. The ministry (or the minister) using the carrot and stick approach “encouraged” exporters to buy the produce directly from the newly established EPVs. (The writer can be reached at senadhiragomi@gmail.com)

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