Citing health concerns the Sri Lankan government led by President Gotabaya Rajapaksa imposed a ban on the import of chemical fertilizers on the 6th of May, 2021. According to Fitch Ratings the ban has severely affected the country’s tea and palm oil plantations.
The continuous injection of liquidity by the Central Bank has resulted in a forex shortage and the authorities have sorted to controlling imports as a result. The government states that the fertilizer ban will allow them to save over $400 million annually.
While the government proposes the alternative of organic fertilizers not all tea and palm plantations have the ability to readily switch and as a result experts estimate that the quantity of produces may decline. The decline will cause prices to be increased as a means of compensating with many predicted that $5 may be charged per one kilogram of tea. The highest price ever recorded for one kilogram of tea at the Colombo Tea Auction house was $4.30 back in September 2017.
No.820, Mount Cresent,Malabe,Sri Lanka