Editing Economy of Sri Lanka (section)

=== Agriculture ===
{{Main|Agriculture in Sri Lanka|Livestock in Sri Lanka}}
The [[agricultural sector]] of the country produces mainly rice, coconut and grain, largely for domestic consumption and occasionally for export. The tea industry which has existed since 1867 is not usually regarded as part of the agricultural sector, which is mainly focused on export rather than domestic use in the country.<ref>{{cite web|url=http://www.country-studies.com/sri-lanka/agriculture.html|title=Sri Lanka – Agriculture|publisher=CountryStudies.com}}</ref>

Sri Lanka's agricultural and agri-allied manufacturing is likely affected by climate variations. There was a flood in May 2018 followed by floods in May 2016 and May 2017.

==== Transition to biological agriculture ====

In June 2021, Sri Lanka started the first 100% organic farming or biological agriculture program and imposed a countrywide ban on inorganic fertilizers and pesticides. The program was welcomed by its advisor [[Vandana Shiva]],<ref>{{Cite web|date=2021-06-16|title=Sri Lanka's shift towards organic farming|url=https://navdanyainternational.org/sri-lankas-shift-towards-organic-farming/|access-date=2021-09-05|website=Navdanya international|language=en-US}}</ref> but ignored critical voices from scientific and farming community who warned about possible collapse of farming,<ref name=":7">{{Cite web |last=Wijesekara |first=Asanka |date=25 May 2021 |title=Opinion {{!}} The ban on chemical fertilizer and the way forward of Sri Lankan Tea Industry |url=https://agrigateglobal.com/reads/opinion/opinion-the-ban-on-chemical-fertilizer-and-the-way-forward-of-sri-lankan-tea-industry/ |access-date=2021-09-05 |website=Agrigate Global |language=en-US |quote=By diverting the attention of policymakers towards pointless nonscientific arguments instead of promoting such integrated management systems and high technological fertilizer production, will be only a time-wasting effort and meanwhile, the global demand for Ceylon Tea will generate diminishing returns. At present, there are about 500,000 direct beneficiaries from the tea industry and about 600 factories are operating around the country. In general, the livelihood of around 3 million people is directly and indirectly woven around the domestic tea industry.  The researchers and the experienced growers have predicted that a 50 per cent reduction in the yield has to be anticipated with the ban on chemical fertilizer. The negative implication of this yield reduction is such that there is a risk of collapsing the banking sector which is centralized around the tea industry in the major tea growing areas including Ratnapura, Galle, Matara, Kaluthara, and Kegalle.}}</ref><ref>{{Cite web |last=Wickramatunga |first=Wicky |date=11 May 2021 |title=Opinion {{!}} Inorganic Fertilizer and Agrochemicals Ban in Sri Lanka and Fallacies of Organic Agriculture |url=https://agrigateglobal.com/reads/opinion/inorganic-fertilizer-and-agrochemicals-ban-in-sri-lanka-and-fallacies-of-organic-agriculture/ |access-date=2021-09-05 |website=Agrigate Global |language=en-US}}</ref><ref>{{Cite web|date=2021-06-08|title=Sri Lanka Going Organic: Rethink the strategy; Agriculturists Write to President {{!}} The Sri Lankan Scientist|url=https://scientist.lk/2021/06/08/sri-lanka-going-organic-rethink-the-strategy-agriculturists-write-to-president/|access-date=2021-09-05|language=en-US}}</ref><ref>{{Cite web |last=Jayasundara |first=Hiran B. |date=2021-06-30 |title=Organic Farming In Sri Lanka – Ideology Of Hitler & Sri Lankan Agri "Cults" |url=https://www.colombotelegraph.com/index.php/organic-farming-in-sri-lanka-ideology-of-hitler-sri-lankan-agri-cults/ |access-date=2021-09-05 |website=Colombo Telegraph |language=en-US}}</ref><ref>{{Cite web |last=Durham |first=Tim |date=2021-06-25 |title=Sri Lanka's organic push threatens to backpedal ag progress |url=https://www.agdaily.com/insights/perspective-sri-lankas-organic-push-threatens-to-backpedal-ag/ |access-date=2021-09-05 |website=Agdaily |language=en-US}}</ref> including financial crisis due to devaluation of national currency pivoted around tea industry.<ref name=":7" /> In the autumn of 2021 Sri Lanka experienced a massive drop in farming output by up to 50% and food shortages. The situation in the tea industry was described as critical, with farming under the organic program being described as 10x more expensive and producing half of the yield by the farmers.<ref>{{Cite web|title=Organic food revolution in Sri Lanka threatens its tea industry|url=https://www.aljazeera.com/news/2021/9/1/organic-food-revolution-sri-lanka-tea-industry|access-date=2021-09-05|website=www.aljazeera.com|language=en}}</ref> In September 2021 the government announced "economic emergency", as the situation was further aggravated by falling national currency exchange rate, inflation rising as result of high food prices, and pandemic restrictions in tourism which further decreased country's income.<ref>{{Cite news|date=2021-09-01|title=Covid: Sri Lanka in economic emergency as food prices soar|language=en-GB|work=BBC News|url=https://www.bbc.com/news/business-58390292|access-date=2021-09-05}}</ref><ref name="ThePrint 2021">{{cite web | first=Samyak | last=Pandey | title=How Sri Lanka's overnight flip to total organic farming has led to an economic disaster | website=ThePrint | date=5 September 2021 | url=https://theprint.in/world/how-sri-lankas-overnight-flip-to-total-organic-farming-has-led-to-an-economic-disaster/728414/ | access-date=6 September 2021}}</ref><ref name="Perumal 2021">{{cite web | last=Perumal | first=Prashanth | title=Explained - What caused the Sri Lankan economic crisis? | website=The Hindu | date=6 September 2021 | url=https://www.thehindu.com/business/explained-what-caused-the-sri-lankan-economic-crisis/article36314148.ece | access-date=6 September 2021}}</ref><ref name="Jayasinghe 2021">{{cite web | last=Jayasinghe | first=Amal | title=Sri Lanka organic revolution threatens tea disaster | website=Phys.org | date=1 September 2021 | url=https://phys.org/news/2021-09-sri-lanka-revolution-threatens-tea.html | access-date=6 September 2021}}</ref> The government cancelled some of these measures, but importing [[urea]] remains banned.<ref name="France 24 2021">{{cite web | title=Sri Lanka walks back fertiliser ban over political fallout fears | website=France 24 | date=5 August 2021 | url=https://www.france24.com/en/live-news/20210805-sri-lanka-walks-back-fertiliser-ban-over-political-fallout-fears | access-date=6 September 2021}}</ref> Sri Lanka is seeking to introduce [[Rationing#Peacetime rationing|peacetime rationing]] of essential goods.<ref name="Perumal 2021" />

In mid-October 2021 the ban was largely lifted "until the island was able to produce enough organic fertiliser".<ref>{{Cite web|date=2021-10-19|title=Sri Lanka reverses organic farming drive as tea suffers|url=https://www.france24.com/en/live-news/20211019-sri-lanka-reverses-organic-farming-drive-as-tea-suffers|access-date=2021-10-19|website=France 24|language=en}}</ref> In November 2021, Sri Lanka abandoned its plan to become the world's first organic farming nation following rising food prices and weeks of protests against the plan.<ref>{{Cite news|last=Watt|first=Louise|date=2021-11-21|title=Sri Lanka abandons drive to become world's first organic country amid spiralling food prices|language=en-GB|work=[[The Daily Telegraph]]|url=https://www.telegraph.co.uk/world-news/2021/11/21/sri-lanka-abandons-drive-become-worlds-first-organic-country/|access-date=2022-01-18|issn=0307-1235}}</ref> As of December 2021, the damage to the agricultural production was already done, with prices having risen substantially for vegetables in Sri Lanka, and time needed to recover from the crisis. The ban on fertilizer has been lifted for certain crops, but the price of [[urea]] has risen internationally due to the price for oil and gas.<ref name="The New York Times 2021sri2">{{cite web|last1=Wipulasena|first1=Aanya|last2=Mashal|first2=Mujib|date=7 December 2021|title=Sri Lanka's Plunge Into Organic Farming Brings Disaster|url=https://www.nytimes.com/2021/12/07/world/asia/sri-lanka-organic-farming-fertilizer.html|access-date=19 January 2022|website=The New York Times}}</ref> Jeevika Weerahewa, a senior lecturer at the [[University of Peradeniya]], predicted that the ban would reduce the [[Paddy field|paddy]] harvest in 2022 by an unprecedented 50%.<ref>{{Cite news|last1=Wallen|first1=Joe|last2=Hewage|first2=Nishantha|date=2022-01-31|title=Sri Lankan families go hungry as cost of food skyrockets|language=en-GB|work=The Daily Telegraph|url=https://www.telegraph.co.uk/global-health/climate-and-people/sri-lankan-families-go-hungry-cost-food-skyrockets/|url-status=live|access-date=2022-02-01|archive-url=https://web.archive.org/web/20220201045654/https://www.telegraph.co.uk/global-health/climate-and-people/sri-lankan-families-go-hungry-cost-food-skyrockets/|archive-date=1 February 2022|issn=0307-1235}}</ref>