US announces $40 million agricultural aid to Sri Lanka

The United States on Saturday announced $40 million in aid to buy fertiliser and other key agricultural inputs in time for the next cultivation season in crisis-hit Sri Lanka.

USAID Administrator Samantha Power, who is visiting Sri Lanka, made the announcement after she met farmer representatives in Ja-Ela outside the capital, Colombo. She said the money will be in addition to the $6 million announced earlier to assist low-income farmers.

Sri Lanka is facing its worst economic crisis and acute shortages of essentials like food, fuel and medicines because of a lack of foreign currency to pay for the imports. Agricultural yields dropped by more than half for the past two cultivation seasons because authorities had banned the imports of chemical fertilisers ostensibly to promote organic farming.

“The farmers that I just met with described enormous challenges that the economic crisis has placed on them and their families and the whole community. They described phenomena that were unimaginable two, three years ago,” Power told reporters.

Sri Lanka’s total foreign debt amounts to more than $51 billion of which $28 billion must be repaid by 2027.