When Iona visited Sri Lanka in April 2022 to meet our partners at Ekoland, the country was in ruins. A state of emergency had been declared following prolonged protests. Economically, the country was in a very bad state. Massive price increases and food shortages caused many people to face hardship. Reasons for this scarcity included a significant decline in tourism due to the pandemic, failed harvests caused by a major agricultural reform, and the country being heavily indebted to China.

Iona witnessed endless queues at petrol stations. Fuel was scarce, yet essential for many Sri Lankans to drive to work. Due to demonstrations, she almost couldn't reach the airport on her way back. Meanwhile, you hear nothing about Sri Lanka in the news anymore; the sensation is over. But we wondered, what is the situation like in Sri Lanka now?

On the website of the Dutch government, we read that there are still problems: "Sri Lanka is in a deep economic crisis and a politically uncertain phase with a new government."

The situation for farmers in Sri Lanka

In Sri Lanka, we work with Ekoland Produce. Eko Land Produce was founded in 2020 in collaboration with the local community to give farmers new hope during the COVID pandemic. Farmers in the network receive a fair price for their crops and the necessary support to improve their income. The community is at the heart of everything they do. After the pandemic came the economic crisis, and it once again showed how important the community and the support they can offer each other are.

Due to the economic crisis, the Sri Lankan Rupee has depreciated in value. This makes importing products very expensive, causing costs for things like oil to skyrocket. Consequently, the government sometimes doesn't have enough money available to import it at all. Export, however, yields relatively high value. Most (smaller) farmers, however, cannot export directly and therefore see little of the increased value. In short, costs are rising, but incomes are not increasing fast enough.

Nihal: "At the beginning of the year, the value of the Rupee had dropped significantly, and farmers could demand good prices for their products. However, in the last two months, the exchange rate has risen again by 15%, which has reduced their disposable income. For some spices, market prices are still good, but the meager harvests of the past three years (especially pepper harvests were poor) make it difficult to generate substantial income. Turmeric farmers are also struggling. There is too much supply in the domestic market and too little demand from the foreign market. At Ekoland, we bought as much stock as we could finance to help them, hoping that we would soon receive large export orders."

They are prepared for a difficult period of at least another two years. By then, hopefully, all debts will be settled. "We will have to sacrifice certain luxuries and lead a simpler life." He himself calls this 'a blessing in disguise': is this a curse or a blessing? Less luxury leads to more connection with nature and greater appreciation for the things that truly matter in life.

Nihal: "We are not giving up hope. If we all put our shoulders to the wheel and tourism and agricultural exports pick up again, we might get out of this situation sooner." Farmers play an important role in the country's economic situation, especially those who grow food for export. If they work disciplined and receive support from the government and exporters, they can achieve their goals.

How do our partners on the ground experience the situation in Sri Lanka?

We asked Nihal from Ekoland how people in Sri Lanka are experiencing the current situation. Nihal: "The situation has definitely improved. No more long queues at petrol stations. There is now a distribution system with quotas for petrol, and that actually works fine. However, transportation costs have doubled."

The country is calmer, but the question is how long that will last. The protests have currently been suppressed. Partially due to strict measures and penalties, but also because there is renewed hope that better times are ahead. Presidential, general, and local elections are expected to take place towards the end of the year, although many people believe this is a political trick to keep people calm. The question remains how long this situation can continue while the current economic crisis persists. These are uncertain times.

Tourism is certainly picking up again and is expected to reach pre-pandemic levels by 2024. Many who worked in the tourism industry left the country to seek their fortune elsewhere when the situation was so bad, but for those who stayed, there are great opportunities.

What we can do to help farmers in Sri Lanka

Are you considering Sri Lanka as a holiday destination? Do it! The people are still friendly, the food is still fantastic, and the nature is beautiful. Moreover, they can really use the money from tourism. No (distant) holiday plans, but still want to contribute and help the farmers in Sri Lanka? Nihal: "By importing directly from the farmers or buying products through the shortest possible chain and being willing to pay a fair price for the products, you help the farmer and encourage the exporter to continue working in this way. That is why we are so happy with the collaboration we have with The Good Spice and This Side Up in the Netherlands, Kandy Spices from Denmark, and Pepper Quest from Sweden. If we can grow and expand such collaborations, it will certainly impact the country's economy and the living standards of our farmers. Future success largely depends on cooperation between importers, exporters, and farmers. To achieve this, we must work together based on trust, understanding, and perseverance."

Do you want to support the farmers from Sri Lanka? Order the most delicious single-origin spices, and we will ensure that the farmers receive a fair price. We have cinnamon and black pepper from Sri Lanka. Are you, or do you know someone, interested in importing larger quantities of turmeric from Sri Lanka? Let us know, and we will gladly put you in touch with the right person!

Feeling like cooking Sri Lankan food? With this curry recipe, you can make a delicious spice journey to Sri Lanka!