Connect with us

Economy

Govt. urged to reconsider spices import move

Published

on

The Spices and Allied Products Producers’ and Traders’ Associ-ation (SAPPTA) yesterday called on the Government to reconsider its decision to import spices for re-export, warning of potentially detrimental consequences for the local industry and economy. 

“The move could undermine the local spice industry, impacting numerous farmers, exporters, and stakeholders in the value chain,” SAPPTA President Christopher Fernando told the Daily FT.

He argued that the decision, made by the Cabinet on 11 June, to import selected spices for reprocessing and re-export, could have significant negative effects on the local agricultural market.   “We request the Government to reconsider this matter, as it poses a significant threat to a large number of farmers and exporters. The Cabinet decision could harm the entire value chain and the overall economy,” he added. 

He said the re-export scheme has raised significant concerns within the association regarding its impact on the quality of imported products and its implications for local growers. 

“The ‘price control’ mechanism inherent in the TIEP scheme allows certain companies to import substandard spices, re-package them and export them at lower prices. This practice not only threatens the livelihoods of our farmers but also poses a risk to the integrity of our domestic market with inferior quality products,” he stressed.

The Cabinet decision was made following a meeting on 18 March, where the Finance, Economic Stabilisation and National Policies Ministry Secretary instructed a review of the Import and Export Control Regulations No. 3 of 2024. Key recommendations approved include: 1) Providing an opportunity to import selected spices for reprocessing and re-export to businesses approved by the Board of Investment under the procedure for the import and processing of selected spices and re-export the same in the form of oil extraction, oleoresin and residue; and 2) Issuance of Import and Export (Control) Regulations under the provisions of the Import and Export (Control) Act No. 1 of 1969 for the above purpose.

Fernando cited past examples where relaxed import restrictions on turmeric and ginger led to local farmers ceasing cultivation, which increased demand and foreign exchange spending on imports. “Similarly, the past relaxation of import restrictions on pepper resulted in foreign pepper being mixed with local produce, causing high levels of chemical residues and damaging Sri Lanka’s reputation. Although the Government eventually halted these imports, the damage was already done,” he claimed. SAPPTA noted that the current favourable prices for pepper could be adversely affected by the new policy, significantly impacting small growers and exporters. 

He also expressed concerns that since BOI companies in the spice sector are not located in regulated trade zones, these imports could end up in the local market, negatively affecting local growers and exporters. 

Fernando pointed out that the Sri Lanka Tea Board (SLTB) has rightly rejected similar appeals for tea imports to protect the industry and the ‘Ceylon Tea’ brand. 

SAPPTA acknowledged the President’s efforts to support and encourage the agricultural sector, but Fernando stressed the industry’s deep concern about the recent Cabinet decision. 

He also highlighted issues in the rubber industry, where the import of centrifuge latex by BOI companies caused fluctuations in local prices, leading farmers to abandon rubber cultivation. 

Fernando warned that the spice industry might follow a similar path, resulting in increased reliance on imports and more foreign exchange leaving the country. 

Against this backdrop, SAPPTA urged Agriculture and Plantation Industries Minister Mahinda Amaraweera to engage with the association and other stakeholders before making any decisions on this matter.

“Our association represents the collective voice of the spices industry and can provide valuable insights and expertise in formulating trade policies that promote transparency, inclusivity and equitable outcomes for all stakeholders involved. Thus, relevant authority’s prompt response to our concerns and addressing this critical issue is crucial for well-being of our farmers and exporters,” he added.

During the first five months, Sri Lanka earned $ 112.93 million by exporting spices and essential oils. However, it decreased by 24.58% year-on-year (YoY) due to the poor performance in exports of cloves (-83.04 %). Clove exports to India decreased by nearly 100% in May 2024 compared to may 2023.

Source – DailyFT

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Economy

Sri Lanka Govt to launch GovPay

Published

on

By

The initial step in the digitalisation of government services, ‘GovPay’, will be officially launched under the patronage of President Anura Kumara Disanayake on February 7th, 2025.

“This ground-breaking initiative will streamline and modernize how government institutions handle payments, enabling seamless transactions through a secure and efficient digital platform” President’s office said in a statement. 

Continue Reading

Economy

AKD Government revokes contentious 500 MW Adani wind power contract

Published

on

By

The Cabinet of Ministers chaired by President Anura Kumara Dissanayake has revoked a decision made by his predecessor Ranil Wickremesinghe in June last year to award a controversial 484 MW of wind power plants in Mannar and Pooneryn to Adani Green Energy SL Ltd.

The project was challenged on multiple grounds, including the arbitrary and excessive price of US cents 8.26 per kilowatt hour at a time when local bidders were offering prices as low as 4.88 cents.

Many environmental organisations, including the Wildlife and Nature Protection Society and Environmental Foundation Ltd., opposed the project owing to deficiencies in the Environmental Impact Assessment and because Mannar is a critical habitat for migratory birds. The local community, represented by the Bishop of Mannar too, vehemently opposed the project because of the harm to local industries and livelihoods.

In the course of his election campaign, the present President pledged to cancel the deal and call for international tenders to develop wind power in Sri Lanka. 

Consistent with that pledge, on 30 December the Cabinet decided “To revoke the cabinet decision dated 2024-05-06 numbered CP No. 24/0850/621/047 submitted by the then Minister of Power and Energy on ‘Proposal of Adani Green Energy SL Limited for the Development of 484 MW of Wind Power Plants in Mannar and Pooneryn.”

Biodiversity scientist Rohan Pethiyagoda, who for the last year fought tirelessly against the proposal award told the Daily FT: “Everyone interested in environmental integrity and financial transparency will celebrate the fact that President Dissanayake has delivered on his promise to defeat this conspiracy to defraud the people of Sri Lanka.” 

“Personally, I am delighted by this decision. But it is not enough. The Government must now release all the related files to the Bribery Commission and request a full investigation as to how this scam was perpetrated in the first place. Who was the mastermind behind it? Remember, the last Government agreed to buy electricity from Adani at a rate that was 70% higher than the locally tendered price. Into whose pockets was that 70% going? It added up to billions of dollars,” he said.

Commenting on the culture shift brought about by the NPP Government, Pethiyagoda said: “The degree of transparency we are now seeing is unprecedented. There was no song and dance from the NPP about this hugely consequential Cabinet decision. Instead, the attorney general routinely filed it in court as part of a 174-page submission that reads like something out of Wikileaks. This is a huge victory for environmental and social justice. Much kudos to AKD.”

Pethiyagoda also told the Daily FT that by the same decision, the Cabinet has appointed a new Project Committee and Procurement Committee to make recommendations regarding Adani’s proposal, but that that committee would be constrained by the President’s election pledge to invite international bids for the project. “It could be that the President is under pressure to give this project to an Indian company,” he said, “in which case it is likely that bids will be restricted to companies incorporated in India. Then, Adani too can compete in an open and transparent manner.”

Source – DailyFt

Continue Reading

Economy

BBC has named Sri Lanka one of the 25 Best Places to Travel in 2025

Published

on

By

Recognized by the BBC as the ninth destination on its prestigious list of “The 25 Best Places to Travel in 2025,” Sri Lanka continues to capture the imagination of travelers worldwide. 

The UK-based media powerhouse praised the island nation for its enchanting blend of natural beauty and cultural treasures, from mist-shrouded hilltop tea plantations and freely roaming wild elephants to ancient temples steeped in history and idyllic waves ideal for surfers.

Despite declaring bankruptcy in April 2022, Sri Lanka has demonstrated remarkable resilience under new leadership. The recently appointed President has focused on revitalizing the country after the dual challenges of a global pandemic and civil unrest. 

Tourism plays a pivotal role in this effort, with the country leaning on its breathtaking landscapes, vibrant culture, and storied heritage to attract global visitors.

Sri Lanka’s recovery narrative and diverse offerings—from serene beaches to lush, misty highlands—make it a destination that appeals to travelers seeking both beauty and inspiration in 2025.

Sri Lanka is aiming to attract an impressive 3 million visitors in 2025 and has started the year on a promising note, welcoming nearly 80,000 travelers within the first 10 days of January.

India and Russia have emerged as the leading source markets, contributing 11,749 (16.6%) and 11,629 (16.4%) arrivals, respectively, between January 1 and 9.

The United Kingdom ranked third with 5,520 visitors (7.8%), followed by Germany at 5,049 (7.1%), Australia with 3,055 (4.3%), and France contributing 2,714 (3.8%). Notably, January 2 and 3 stood out with impressive daily arrival figures of 9,392 and 8,974, respectively.

Meanwhile, Chinese arrivals, which are traditionally lower during the Lunar New Year as families celebrate at home, ranked seventh. However, a surge in connectivity with expanded routes by Chinese airlines is expected to boost these numbers in the coming months.

Source: TTW

Continue Reading
Advertisement

Trending