Latest news with #WasanthaSamarasinghe
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First Post
27-05-2025
- Business
- First Post
Explained: Sri Lanka's salt crisis and how India is helping
Sri Lanka is running desperately short of salt. Social media is flooded with pictures of empty shelves, while citizens are complaining about having to spend days searching for the staple. But what happened and why? And how is India helping? read more Sri Lanka is running desperately short of salt. While the situation is tinged with irony given the fact that the country is surrounded by the sea on all sides, it is no laughing matter for the citizens of the island nation. This is just the latest crisis to hit Sri Lanka over the past few years. People in Sri Lanka have had to struggle with a shortage of food, medicine and fuel since 2022. STORY CONTINUES BELOW THIS AD But what happened? What do we know? How is India helping? Let's take a closer look: What happened? As per The Independent, social media is flooded with pictures of empty supermarket shelves. 'There is a severe shortage of salt. Supermarket shelves are running out of salt and consumers are getting frustrated,' Jamila Husain, editor of Daily Mirror, wrote on X. Consumers in Sri Lanka are having to spend days hunting for salt. 'Had to hunt for salt for the past few days and finally found salt in Boralasgamuwa. Another day in Sri Lanka,' one citizen wrote on social media. The lucky who find it end up having to pay double the market price. As per citizens are having to shell out as much as Rs 145 per kilo for salt. Why is this happening? As per The Independent, the salt shortage in Sri Lanka is due to domestic production crashing. As per salt production in Sri Lanka usually takes place in March-April and October-November. But heavy rainfall and lack of sufficient light since mid-March has caused output to plummet at the Hambantota, Elephant Pass and Puttalam salterns. The incessant rains have also washed away 15,000 kilos of harvested salt that was ready to be collected. Puttalam alone provides 60 per cent of the country's domestic output, as per STORY CONTINUES BELOW THIS AD A vendor mixes fruits with spices and salt to sell customers at a stall in Colombo. Sri Lanka requires180,000 metric tonnes of salt eveyr year. Reuters A 50 kilo bag of salt at Puttalam, which used to be sold for Rs 420, is now being sold for close to Rs 2000. The Independent quoted trade minister Wasantha Samarasinghe as saying, 'They expected to get a harvest in March, and then in May. But in May also production has broken down due to rain.' As per Tamil Guardian, the Elephant Pass and Kurunchativu salterns prior to 1990 would produce 85,000 metric tonnes of salt annually. However, the armed conflict in Sri Lanka caused production to decline in both these salterns. Production at the Elephant Pass stopped entirely after it was captured by The Liberation Tigers (LTTE). Today, the Elephant Pass produces just 20,000 tonnes of salt annually. As per Sri Lanka's current salt demand is estimated at 180,000 metric tonnes. But the salt industry produces only between 135,000 and 140,000 metric tonnes per year – enough to meet 60 to 65 per cent of domestic demand. STORY CONTINUES BELOW THIS AD How is India helping? India has extended a hand towards Sri Lanka in its time of need. New Delhi has sent Colombo over 3000 metric tons of salt, as per Of this, 2,800 metric tonnes were provided by Indian government-owned salt firms. The rest 250 metric tonnes were bought from private Indian firms. (File) Sri Lanka's President Anura Kumara Dissanayake and Prime Minister Narendra Modi shake hands. India has extended a hand towards Sri Lanka in its time of need. Reuters India's Ministry of Commerce and the diplomatic machine in Colombo are coordinating the delivery. Some have expressed frustration with the situation. 'It's ironic that an island nation surrounded by the ocean continues to face recurring salt shortages. And once again, for something as basic as salt, we're turning to India – just as we do for fuel, medicines, and other essentials,' academic Dr Chandana Wickaramasinghe wrote on X. According to data, around 6 million Sri Lankans, nearly a third of the country's population, faced food insecurity during the prolonged economic crisis. But others are grateful. 'India's support during our worst crises—economic, medical, or now climatic—has been unwavering,' a senior Sri Lankan bureaucrat, speaking on condition of anonymity, told 'This is what a real neighbourhood-first policy looks like.' STORY CONTINUES BELOW THIS AD Sri Lanka's politicians said they were left facing no choice. 'Given the failed harvest, we had no choice but to import salt despite our efforts to support the local industry,' Samarasinghe was quoted as saying by The Independent. Sri Lanka in January bought 35,000 tonnes of salt from India – the first time it had done so in 15 years. Interestingly, Samarasinghe on Monday said his country had not relaxed the import ban on salt due to requests from the industry. We first imported about 12,500 tonnes of salt,' Samarasinghe was quoted as saying by 'The salt producers association told us not to bring any more salt after we brought the 12,000 tonnes. Previous administrations in Sri Lanka had placed import controls on salt. With inputs from agencies
Economic Times
25-05-2025
- Business
- Economic Times
China woos Sri Lanka with FTA and business deals
China and Sri Lanka are discussing a free trade agreement. A Chinese delegation will attend a trade and investment forum in Colombo. They will explore strengthening economic cooperation. Memoranda of understanding are expected to be signed. These will cover trade promotion and industrial supply chains. The Hambantota port deal is also under review. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi: China and Sri Lanka are exploring a free trade agreement (FTA) as Beijing continues to strengthen economic and military ties with India's neighbours.A high-level Chinese delegation led by its commerce minister Wang Wentao will attend the Sri Lanka-China Trade and Investment Forum in Colombo on May 30, according to persons familiar with the 115-member business delegation representing 77 Chinese companies will engage with potential Sri Lankan business and investment partners at the forum hosted by The Ceylon Chamber of Commerce and Sri Lankan commerce forum will offer 'a platform to strengthen bilateral commercial ties, facilitate business matchmaking, and identify new trade and investment avenues, in a diverse range of sectors,' the chamber from discussing the China-Sri Lanka FTA, the countries are expected to sign two memoranda of understanding (MoUs) – for establishing a working group on promoting trade, and strengthening economic cooperation in industrial and supply chains, according to Colombo-based development comes at a time when the international community is monitoring the China-Pakistan military axis after Beijing provided military and economic support to Islamabad during the recent India-Pakistan delegates visiting Sri Lanka will represent four major chambers representing various industries including textiles, machinery, electronic products, food stuff, native produce and animal by-product, sources cited above would co-chair the eighth session of the China-Sri Lanka Joint Committee on Economic and Trade Cooperation with his counterpart Wasantha Samarasinghe, it has been up on the discussions held during the seventh session in 2021, both sides would review MoUs on (i) formulation of rules and regulations on Hambantota Free Port Act, (ii) strengthening investment cooperation in the digital economy, and (iii) promoting investment cooperation in green Sri Lankan foreign ministry has expressed apprehensions on the MoU on the digital economy because it encourages exchanges and cooperation at the local level that needs careful consideration due to constitutional limitations, sources said on the condition of anonymity. Moreover, the MoU warrants broader stakeholder consultations in view of the sensitivity of the Chinese delegation will also participate in the inaugural meeting of the China-Sri Lanka Working Group on Investment and Economic Cooperation, set up in accordance with an MoU signed during President Anura Kumara Dissanayake's visit to China in highlight of the visit was Sinopec agreeing to invest $3.7 billion to construct a 'state-of-the-art oil refinery' with a capacity of 200,000 barrels in the southern Hambantota is relevant to mention that in Dec 2017, China secured the strategic Hambantota port in the Indian Ocean on a 99-year lease as a debt swap. China has also secured a long-term lease to build an economic zone at Hambantota. Incidentally, Dissanayake was a critic of the Hambantota port deal for its long-term lease while he was in the opposition.
