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Climate-Smart Agriculture Investment Plan Launched to Combat Climate Change
Sri Lanka Unveils Climate-Smart Agriculture Investment Plan

Sri Lanka Unveils Climate-Smart Agriculture Investment Plan

Sri Lanka has launched its first Climate-Smart Agriculture Investment Plan. This plan aims to strengthen farming against climate change impacts. It’s funded by the Green Climate Fund and led by the UN’s Food and Agriculture Organization.

The plan will give farmers sustainable practices and tools. These will help them deal with rising temperatures and extreme weather. The goal is to lessen the harmful effects of climate change on agriculture.

Sri Lanka is one of the top 10 countries at risk from climate change. This ranking comes from the Global Climate Risk Index. Without action, crop yields could drop by 10-12% in dry and intermediate zones.

The plan is a key step towards a stronger future for Sri Lankan farmers. It brings together experts from various fields to create effective strategies. These strategies will match Sri Lanka’s development goals.

The plan promotes ways to reduce climate change effects. It also teaches farmers how to adapt their methods. This knowledge will help them face the challenges of a changing climate.

FAO and Green Climate Fund Collaborate to Enhance Agricultural Resilience

The FAO and GCF are teaming up to boost climate-resilient food systems in Sri Lanka. This effort aims to improve agricultural resilience and support low-emission farming practices. It ensures food security for the growing population while promoting sustainable agriculture.

The FAO predicts food production must increase by 60% to feed 9 billion people by 2050. This initiative is a crucial step towards meeting that goal. It addresses both current and future food security challenges.

Innovative Investment Mechanisms to Bridge Farmers and Investors

The FAO-GCF partnership is creating new ways to connect farmers with investors. They’re attracting private sector funding and green investment initiatives. This helps farmers adopt climate-smart agriculture practices and access needed resources.

Similar projects have shown great success. For example, agroforestry systems on Mount Kilimanjaro increased farmers’ incomes by 25%. This was achieved through coffee cultivation, demonstrating the potential of these investments.

Promoting Youth Entrepreneurship in Agriculture

The collaboration focuses on getting youth involved in agriculture. They work with government bodies, private sector, and academia to create opportunities. This helps young people contribute to low-emission farming and climate-resilient food systems.

Youth involvement ensures long-term sustainability of Sri Lanka’s agricultural sector. It also boosts the nation’s economic growth and stability. This approach addresses both present and future agricultural needs.

Climate-Smart Agriculture Investment Plan Launched to Combat Climate Change

Sri Lanka has launched its Climate-Smart Agriculture Investment Plan to tackle climate change challenges. This initiative, backed by the Green Climate Fund and FAO, aims to strengthen the agricultural sector’s resilience.

Sri Lanka ranks among the top ten countries most vulnerable to extreme weather events. Without proper measures, dry and intermediate zones could face a 10-12% yield reduction in agriculture.

The plan involves various stakeholders, including government bodies, private sector, and academia. It aims to develop innovative investment mechanisms for Sri Lanka’s agricultural landscape. The goal is to connect farmers with investors for climate-smart interventions.

The global agrifood system currently emits one-third of all emissions. Food systems consume about 70% of fresh water resources. Global food demand is expected to rise to feed 9.7 billion people by 2050.

The launch workshop is the first of many planned consultations. Sri Lanka is taking proactive steps to equip its agricultural sector for adaptation and resilience. This approach will help ensure food security while reducing agriculture’s environmental impact.

Key Components of Sri Lanka’s Climate-Smart Agriculture Strategy

Sri Lanka’s Climate-Smart Agriculture Investment Plan aims to boost agricultural resilience and fight climate change. The $140 million plan promotes sustainable farming, ecosystem restoration, and environmental conservation. It focuses on low-emission agriculture, climate-resilient food systems, and attracting green investments.

The plan targets over 470,000 smallholder farmers in Sri Lanka’s dry zone. It covers 11 administrative districts and six provinces. The project is funded through a six-year Investment Project Financing Credit.

Funding sources include $125 million from IDA Transitional Credit and $15 million from other sources. The plan allocates $42 million for agriculture production and marketing. It also designates $92 million for water management and $6 million for project oversight.

Agroforestry is a key priority, integrating trees into farmland to boost ecosystem services. This practice enhances biodiversity and carbon sequestration. Agroforestry helps farmers adapt to climate change by providing shade and reducing soil erosion.

The plan supports agroforestry adoption through training and financial incentives. A Project Management Unit within the Ministry oversees implementation. A National Project Steering Committee provides strategic guidance and coordination.

Monitoring and evaluation are crucial to assess the plan’s outcomes. These measures ensure effective implementation of the action plan.

FAO Introduces Good Agricultural Practices to Boost Farmer Incomes
FAO Introduces Good Agricultural Practices in Sri Lanka

FAO Introduces Good Agricultural Practices in Sri Lanka

The UN’s Food and Agriculture Organization (FAO) has brought Good Agricultural Practices to Sri Lankan farmers. Over 600 smallholder vegetable farmers in Badulla, Monaragala, and Mullaitivu districts are benefiting. This initiative aims to boost farms, increase agricultural productivity, and enhance farmer livelihoods through sustainable methods.

FAO’s program equips farmers with essential tools and knowledge. It promotes climate-resilient approaches and GAP certification. The results are impressive: 71% of farmers report better crop quality and less pesticide use.

Farmers’ incomes have also improved significantly. 72% saw an increase in total income. 24 farmers made over Rs. 1,000,000 in one season from just 0.25 acres.

More than 150 farmers exceeded Rs. 500,000 in income. This shows the economic impact of Good Agricultural Practices. Chemical fertilizer use decreased by 48% per 0.25 acres, highlighting environmental benefits.

FAO’s work aligns with Sri Lanka’s priorities and UN development goals. Their efforts to empower smallholder farmers through modern practices are promising. This initiative could have a lasting impact on Sri Lanka’s agriculture and farming communities.

FAO’s Initiative Modernizes Farms and Empowers Smallholder Farmers

The FAO has launched a groundbreaking initiative in Sri Lanka to modernize farms. It empowers smallholder farmers through climate-smart agriculture practices. The program provides essential agriculture kits, training, and financial support for sustainable farming.

Providing Essential Agriculture Kits and Training

Over 600 smallholder vegetable farmers in Badulla, Monaragala, and Mullaitivu received tailor-made agriculture kits. These kits include drip irrigation systems, plastic mulch, insect-proof nets, and GI pipes. They enable farmers to implement modern, water-efficient, and pest-resistant farming techniques.

The FAO conducts comprehensive farmer training programs to ensure effective resource utilization. Farmers learn to optimize crop yields and reduce reliance on harmful pesticides. They also gain skills in adopting environmentally friendly practices through hands-on workshops and demonstrations.

Facilitating Capacity Building through Farmer Field Schools

The FAO has established Farmer Field Schools across the targeted districts. These interactive platforms foster peer-to-peer knowledge sharing. They empower farmers to achieve Good Agricultural Practices (GAP) certification.

Farmers gain exposure to innovative techniques like integrated pest management. They also learn efficient irrigation methods, boosting productivity and crop quality.

Offering Cash Assistance to Support Transition

The FAO and World Food Programme provide cash assistance to farmers. This support helps meet their immediate food and nutrition needs. It ensures farmers can focus on implementing sustainable farming practices without compromising their livelihoods.

The initiative’s impact has been remarkable, with 71% of farmers reporting improved crop quality. There’s also been a significant reduction in pesticide and agrochemical usage. Additionally, 72% of farmers have experienced an increase in total income.

Twenty-four farmers made profits exceeding Rs. 1,000,000/- in a single cultivation season. Moreover, 150 farmers surpassed the Rs. 500,000/- mark.

Tangible Outcomes: Improved Crop Quality, Increased Incomes, and Environmental Benefits

The FAO’s Good Agricultural Practices initiative in Sri Lanka has produced remarkable results. Farmers report better crop quality, less pesticide use, and higher profits. The project’s sustainable farming methods have reduced agro-chemical use and improved crop resilience.

Significant Reduction in Pesticide and Agro-chemical Usage

The initiative has greatly reduced pesticide and agro-chemical use among farmers. Over 71% of farmers now use fewer harmful substances, leading to healthier crops. Chemical fertilizer use per 0.25 acres has dropped by 48%, aiding environmental conservation.

Enhanced Crop Resilience and Pest Management with Insect-Proof Nets

Insect-proof nets have revolutionized farming in Sri Lanka. These nets protect crops from pests and diseases, reducing damage and boosting resilience. They also minimize harm from wild animals, maintaining consistent crop quality throughout the season.

Remarkable Increase in Farmer Incomes and Profitability

Good Agricultural Practices have significantly boosted farmer incomes and profits. An impressive 72% of farmers reported higher total income. Over 24 farmers made profits exceeding Rs. 1,000,000 in one cultivation season.

More than 150 farmers surpassed Rs. 500,000 in profits. This shows the potential for financial growth when farmers adopt sustainable practices.

FAO Introduces Good Agricultural Practices to Boost Farmer Incomes

FAO Sri Lanka is committed to modernizing agriculture and improving farmers’ lives. They’ve introduced Good Agricultural Practices (GAP) to smallholder farmers. This has led to better crop quality, higher incomes, and environmental benefits.

GAP adoption has brought remarkable results for farmers. Over 71% saw better crop quality and used fewer pesticides. 72% of farmers increased their total income.

More than 24 farmers made profits over Rs. 1,000,000. Over 150 farmers earned above Rs. 500,000 in one season. Chemical fertilizer use dropped by 48% per 0.25 acres.

An awards ceremony in Thanamalvila celebrated these achievements. It recognized farmers’ accomplishments across three districts. The event highlighted GAP certification’s role in boosting market demand.

Attendees included Australian Deputy Head of Mission, Ms. Lalita Kapur. Provincial Secretary of Agriculture, Mr. Upali Jayasekara, also joined. FAO Assistant Representative, Mr. Nalin Munasinghe, was present too.

Poultry Meat and Egg Production Reaches Self-Sufficiency Levels
Sri Lanka Achieves Self-Sufficiency in Poultry Production

Sri Lanka Achieves Self-Sufficiency in Poultry Production

Sri Lanka’s poultry industry has reached a major milestone. The country now produces enough chicken meat and eggs to meet local demand. Ajith Gunasekara, President of the All Island Poultry Association (AIPA), reports a surge in egg production.

Daily egg production in Sri Lanka has hit 07-08 million. This matches daily consumption needs. In 2021, Sri Lanka produced 2,934.55 million eggs and 236.79 MT of chicken meat.

The chicken population is estimated at 24 million. Local feed sources and better farming practices support this growth. Home cooking waste makes up 40.93% of feed for village chickens.

The industry faces challenges like disease outbreaks. These include Coryza disease, chicken cholera, and chicken pox. However, the sector shows resilience in overcoming these issues.

Village chickens have a 78.32% hatchability rate. In the Batticaloa District, farmers raise an average of 102.2 birds yearly. This success ensures a stable supply of affordable protein.

The thriving poultry sector supports many farmers’ livelihoods. It also employs countless workers in related industries. This achievement offers hope amid Sri Lanka’s economic challenges.

Poultry Industry Growth and Self-Sufficiency

Sri Lanka’s poultry industry has boomed recently, achieving self-sufficiency in production. Farms now meet domestic demand for chicken and eggs. They also export to the Maldives and Middle East, boosting foreign exchange. This growth promotes sustainable agriculture in Sri Lanka.

Increased Egg Production and Market Supply

The poultry industry’s growth has boosted egg production, ensuring steady market supply. Optimal temperatures and artificial lighting have increased egg production by 20-30 percent.

However, temperatures above 28° Celsius can reduce egg production by 10 percent. Despite this, the industry meets Sri Lanka’s growing egg demand.

Daily Chicken Meat Production Surpasses Demand

Sri Lanka now produces 600 metric tons of chicken meat daily. This surpasses the domestic demand of 500 metric tons. The excess has led to self-sufficiency and lower market prices.

Poultry manufacturers have agreed to reduce chicken prices by Rs. 100 per kilo. This benefits consumers and ensures industry sustainability.

Poultry Meat and Egg Production Reaches Self-Sufficiency Levels

Sri Lanka’s poultry industry has hit a major milestone. It now produces enough poultry meat and eggs to meet local needs. This growth comes from smart government plans and tough poultry farms.

Minister Mahinda Amaraweera praised the government’s efforts to boost poultry production. These steps have led to a thriving industry that meets domestic demand for poultry meat and products.

Government Measures to Boost Poultry Production

The government’s active support has been key to achieving self-sufficiency. Importing eggs helped stabilize the market when prices were a concern. Now, with current production levels, egg imports are no longer needed.

Poultry Farms Recover from COVID-19 Setbacks

The poultry industry bounced back from the COVID-19 pandemic. About 3,000 farms closed during the peak due to sales issues. Now, all these farms are up and running again.

This recovery shows how adaptable the industry is. It also proves that government support measures work well. Sri Lanka’s poultry sector is ready to meet growing demand for meat and eggs.

Challenges Faced by Small and Medium-Scale Producers

Small and medium-scale poultry producers in Sri Lanka face significant challenges. Egg prices have dropped to Rs. 30-40, down from Rs. 65 a few months ago. Chicken meat prices have also fallen from Rs. 1,750 to Rs. 850-975 per kilogram.

High production costs, especially for feed, make it hard for smaller farms to stay afloat. They struggle to compete with larger, more efficient farms. Large-scale producers, who have quality certifications, control 90% of the poultry population.

To support smaller producers, targeted interventions are needed. These could include making feed crops more affordable and accessible. Improving processing capacity could help reduce input costs.

Enhancing access to suitable poultry genetics and equipment is crucial. Better veterinary services and financing options are also necessary. These measures can create a more inclusive and sustainable poultry sector.

Government Reverses Organic Farming Policy Amidst Food Shortages
Sri Lanka Reverses Organic Farming Policy Amid Crisis

Sri Lanka Reverses Organic Farming Policy Amid Crisis

Sri Lanka’s government has lifted its ban on chemical fertilizers. This reversal comes amid a severe economic crisis and widespread food shortages. The ban, implemented in May 2021, aimed to make Sri Lanka fully adopt sustainable farming practices.

Rice yields, a staple in Sri Lanka, dropped by 40-50% nationwide. This decrease happened during the Maha growing season after the organic policy started. Sri Lanka had to import 300,000 metric tonnes of rice in just three months.

The new policies have hurt Sri Lankan farmers financially. Many can’t afford essential farming inputs, and some have stopped farming altogether. Food inflation is around 30% and expected to rise further.

Foreign reserves have shrunk to $1.8 billion. This makes it hard for the government to afford imports, including fertilizers. Experts call the food crisis a “man-made disaster”.

Increased hardships are expected in the coming months. Children and pregnant women are particularly at risk. The government is trying to address growing concerns about food availability and accessibility.

Impact of Fertilizer Ban on Sri Lankan Farmers

Sri Lanka’s 2021 chemical fertilizer ban has severely affected smallholder farmers. The ban aimed to reduce imported fertilizer dependence and promote organic farming. However, it resulted in widespread crop failures and decreased agricultural output.

Before the ban, 2 million Sri Lankan farmers relied on subsidized chemical fertilizers. The abrupt shift to organic farming left many struggling to adapt. Some farmers experienced a 50-60% decrease in harvests, devastating their incomes.

Many farmers now can’t afford essential farming inputs like pesticides and equipment. This has made it hard for them to maintain their farms and livelihoods.

Inability to Afford Farming Inputs

The fertilizer ban and economic crisis have made it tough for farmers to buy necessary inputs. Many have taken high-interest loans for pesticides and other essentials. This has worsened their financial situation.

Lack of affordable farm subsidies has left many unable to sustain their farms. This has led to widespread poverty and food insecurity in rural areas.

Farmers Abandoning Cultivation

Many smallholder farmers in Sri Lanka have decided to quit farming altogether. Reduced crop yields and increased input costs have made it impossible to sustain their farms.

Farmers are now seeking alternative income sources, often in urban areas. This trend has significantly reduced agricultural output across the country. It’s contributing to ongoing food shortages and economic instability.

Government Reverses Organic Farming Policy Amidst Food Shortages

Sri Lanka’s government has recognized the need to change its organic farming policy. President Gotabaya Rajapaksa admitted mistakes that require fixing to address food security issues. The goal is to boost domestic food production and ease growing protests.

The government has asked the World Bank for help to buy fertilizers. They plan to bring back subsidies for farmers. However, the details of these changes are still unclear.

Farmers remain doubtful about the government’s ability to keep its promises. This is due to the severe shortage of foreign currency in the country.

The chemical input ban has severely impacted crop yields. The last maha seasonal harvest dropped by 37% compared to the previous year. This is the lowest yield since 2003/04.

Food insecurity has affected about 6.3 million people in Sri Lanka as of September 2022. Food inflation has reached a staggering 94.9%.

To tackle the crisis, Sri Lanka secured a $55 million credit line from India Exim Bank. This money will be used to purchase fertilizers.

The government also had to pay $6.87 million for unsuitable organic fertilizer from China. This was due to their short-lived organic farming policy.

IFOAM – Organics International is organizing workshops to support Sri Lanka. These aim to help the country transition to organic agriculture more sustainably. The focus is on reforms that prioritize food security and domestic production.

Economic Crisis Exacerbates Agricultural Challenges

Sri Lanka’s economic crisis has worsened farmers’ struggles after the organic farming policy. Foreign reserves are low, and inflation is high. Shortages of fuel, food, and medicine have become common.

The country’s foreign debt skyrocketed from $11.3 billion in 2005 to $56.3 billion in 2020. In 2021, it reached 119% of the GDP. Sri Lanka defaulted on its debt in April 2022.

Rising fuel costs make it hard for farmers to grow and transport crops. Power cuts disrupt irrigation and milling. The government raised taxes to increase revenue.

Experts warn that food access and affordability will remain big issues. Vulnerable populations may face increased malnutrition. Many farmers are abandoning their livelihoods due to these challenges.

Globally, 193 million people faced food insecurity in 2021. In East Africa, 265 million live on less than $1.90 per day. About 40% of the population there has poor access to food.

A review of recent literature shows urgent need for solutions. These must address the complex issues facing Sri Lankan farmers and the broader population.

Discussions with IMF Focus on Taxation and Revenue Goals
Sri Lanka IMF Talks Focus on Tax and Revenue Targets

Sri Lanka IMF Talks Focus on Tax and Revenue Targets

The Sri Lanka economy and IMF are discussing fiscal policies and tax reforms. These talks aim to tackle revenue goals and economic challenges. They’re part of the ongoing IMF agreement.

Key Sri Lankan officials met in Washington recently. The Central Bank Governor, Treasury Secretary, and President’s Economic Advisor attended. They focused on tax parts of the IMF deal, especially VAT and revenue targets.

The Cabinet Spokesperson said the government wants to follow IMF recommendations. This is vital for successful economic reforms in Sri Lanka.

Officials will update the public in an upcoming media briefing. The world and Sri Lankans eagerly await the results. These talks could greatly impact the country’s economic future.

IMF and Sri Lanka Engage in Discussions on Fiscal Policies

The IMF and Sri Lanka are discussing fiscal policies. They aim to align Sri Lanka’s taxation and revenue targets with IMF recommendations. These talks address Sri Lanka’s economic challenges, including tourism decline and foreign reserve depletion.

Cabinet Spokesperson Highlights Aim to Align with IMF Recommendations

Cabinet Spokesperson Vijitha Herath stressed aligning fiscal policies with IMF recommendations. No final decisions have been made yet. The government seeks a path for economic stability and growth.

Meetings in Washington Include Key Sri Lankan Officials

A Sri Lankan delegation is in Washington, DC. The CBSL Governor and Treasury Secretary are part of this group. They’re discussing the IMF program’s continuation under the new Government.

These key officials are negotiating expected tax benefits and revenue measures. These elements will be crucial to the IMF agreement.

Tax Components of IMF Agreement Under Review

The tax components of the IMF agreement are under review. The government wants to provide tax benefits and offset losses. They’re also addressing leakages in the Customs and Excise Department.

Recovering defaulted taxes is on the agenda. Leveraging GDP growth for additional revenue is also being considered.

Discussions with IMF Focus on Taxation and Revenue Goals

Sri Lanka is in talks with the International Monetary Fund (IMF) about taxation and revenue targets. The focus is on boosting revenue collection while providing tax benefits to support growth. These measures aim to ease the burden on citizens.

Value Added Tax (VAT) and Revenue Targets Central to Talks

The Value Added Tax (VAT) system is a key topic in the discussions. The government may offer VAT exemptions for essential items to help citizens. However, this must be balanced with meeting revenue targets.

Tax avoidance practices cost countries between 100-240 billion USD annually. Sri Lanka aims to optimize its VAT structure to minimize losses while offering targeted relief.

Sri Lanka Seeks to Provide Tax Benefits and Offset Losses

Sri Lanka is considering raising the Pay-As-You-Earn (PAYE) Tax threshold. This would provide tax benefits to more taxpayers. The government knows it needs to make up for potential revenue losses.

Developing countries like Sri Lanka rely heavily on corporate income tax. They face a bigger burden from Base Erosion and Profit Shifting (BEPS) practices. Sri Lanka is part of the OECD/G20 Inclusive Framework to address tax avoidance.

Proposed Measures Include Addressing Leakages in Customs and Excise Department

One plan to offset revenue losses is to fix leaks in the Customs and Excise Department. Sri Lanka aims to boost revenue by strengthening enforcement and closing loopholes. Regional tax organizations like SAARC help countries implement effective tax policies.

Recovering Defaulted Taxes and Leveraging GDP Growth for Additional Revenue

Sri Lanka is looking to recover defaulted taxes. They plan to use stricter enforcement and offer incentives for voluntary compliance. This could bring defaulters back into the tax net and increase revenue.

The government also plans to use current GDP growth to generate more tax revenue. As the economy grows, the tax base should widen. This could increase revenue without new taxes.

Reforms and Collaboration: The Path Forward for Sri Lanka and IMF

Sri Lanka faces economic challenges that require collaboration with the International Monetary Fund (IMF). The IMF approved a $2.9 billion Extended Fund Facility arrangement for Sri Lanka. This 48-month plan aims to address balance of payments issues and implement structural changes.

Sri Lanka needs a tax policy unit in the Finance Ministry. This unit would advise on tax policies and oversee tax governance. It would focus on direct and indirect taxes, and analyze cost-benefits of new taxes.

The country must strive for a more balanced tax structure. Over 80% of government tax revenue comes from indirect taxes. Multiple corporate tax rates for different industries could promote specific areas.

Sri Lanka must address its debt sustainability. The country aims to negotiate new debt repayment schedules with creditors. Support from China, India, and Japan will aid economic recovery aligned with the IMF programme.

The government must ensure efficient public services and secure food, medicine, and fuel. Two-thirds of Sri Lanka’s energy supply comes from fuel imports. This leaves the nation vulnerable to global energy price shocks.

The IMF calls for stronger social safety nets during fiscal reforms. The government needs to balance public spending, tax revenues, and sustainable foreign borrowing.

By implementing these reforms, Sri Lanka can create a more stable future. This path requires commitment to fiscal consolidation and robust tax policies. With international support, Sri Lanka can overcome its challenges and emerge stronger.