Sri Lanka budgeted $54.6 million to subsidize fertilizer supplies in 2024
In an effort to rejuvenate its agriculture sector and stabilize food security, the Sri Lankan government has earmarked a significant subsidy for fertilizer in its 2024 budget. This move is in response to the economic turmoil and supply chain disruptions experienced since the country’s default in April 2022.
The 2024 budget, presented by President and Minister of Finance Ranil Wickremesinghe, includes a key Fertilizer Subsidy Program. This initiative is set to enhance paddy production productivity and provide agricultural inputs at subsidized rates. A total of 19,500 million rupees ($54.6 million) has been allocated for this program, targeting paddy cultivation during both Yala and Maha seasons.
This budgetary allocation represents a critical step in Sri Lanka’s efforts to recover from its recent economic challenges and to ensure the nation’s food security through sustained agricultural support.
The budget also outlines additional measures to support agriculture:
- Island-wide fertilizer subsidy: 19.5 billion rupees ($54.6 million)
- Pension for about 175,000 farmers: 5.3 billion rupees ($14.8 million)
- Crop cultivation insurance: 1 billion rupees ($2.8 million)
- Subsidies for new rubber planting, replanting, and infilling: 500 million rupees ($1.4 million)
- Support for Small and Medium Scale coconut growers: 500 million rupees ($1.4 million)
- Matching grants for value-added and export-oriented agriculture: 1.6 billion rupees ($4.5 million)
- Subsidy to increase tea and rubber cultivation: 270 million rupees ($0.76 million)
- Subsidies for tea new planting, replanting, and infilling: 500 million rupees ($1.4 million)
- Support for export-oriented minor crops and related entrepreneurs: 400 million rupees ($1.12 million)