SJB MP Harsha de Silva recently expressed deep concerns about the impact of an 18% VAT on Sri Lanka’s farming sector. This new tax, applicable to agricultural machinery, equipment, and inputs, including chemical fertilizers, is expected to heavily burden farmers. He noted that essential dairy products such as liquid milk and eggs are also subject to this tax.
Harsha de Silva highlighted the detrimental effects on rice farming, where farmers are being pushed to grow lower-yield varieties like keeri samba, reducing productivity. He anticipates significant impacts by March 2024.
Reflecting on his previous tenure, Harsha de Silva mentioned initiating the Shakthi Rice program to support small and medium-scale rice millers. Despite initial success, the program was discontinued under Gotabaya Rajapaksa’s administration.
Harsha de Silva also pointed out the stark rise in the cost of living, with a family of four now needing over Rs 170,000 for a standard previously maintained at Rs 90,000. He emphasized the increased economic hardship despite improved supply chains.
Addressing Sri Lanka’s economic challenges, Harsha de Silva stressed the need for strategic planning and a corruption-free approach to avoid dependency on institutions like the IMF, similar to India’s strategy since 1991. His comments call for urgent economic and agricultural reforms to stabilize and rejuvenate Sri Lanka’s economy and farming sector.
