When Iona visited our Ekoland partners in Sri Lanka in April 2022, the country was in ruins. A state of emergency had been declared following prolonged protests. Economically, the country was in a very bad way. Enormous price increases and food shortages caused many people to get into trouble. Reasons for this scarcity were that tourism had declined significantly due to the pandemic, harvests had failed due to a major agricultural reform, and the country was deeply indebted to China.
Iona saw the endless queues at the petrol stations. Fuel was scarce, but is necessary for many Sri Lankans to drive to work. Due to demonstrations, she could barely 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, how is it really 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. There are shortages of imported foodstuffs, fuel (gas, diesel, and petrol) and medicines. There are also frequent short power outages. Most hotels and hotel resorts have sufficient food supplies. There is a distribution system for diesel and petrol. This system also applies to registered tourist organizations. Public transport is available, but runs less frequently.”
How do the locals 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 certainly improved. No more long queues at petrol stations. The distribution system with quotas actually works fine. However, transport costs have doubled.”
The country is less restless, but the question is how long that will remain so. The protests have currently been suppressed. Partially due to the strict measures and penalties imposed, but also because there is renewed hope that better times are coming. Hopefully, presidential, general, and local elections will take place by the end of the year, although many people think this is a political trick to keep people calm. The question remains how long this situation can persist while the current economic crisis continues. These are uncertain times.
Tourism is certainly picking up again and is expected to reach pre-pandemic levels in 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 did not leave the country, there are good opportunities.
The situation for farmers in Sri Lanka
Eko Land Produce was founded in 2020 in collaboration with the local community to give farmers new hope during the COVID pandemic. The farmers in the network receive a fair price for their crops and the necessary support to improve their income. The community is the heart of everything they do. After the pandemic came the economic crisis, and it became clear once again how important the community and the support they can offer each other is.
Nihal: “At the beginning of the year, the value of the Rupee had dropped significantly, and farmers were getting good prices for their products. However, in the last two months, the exchange rate has risen by 15% again, which has reduced their 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 earn 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 have bought up as many supplies as we could finance to help them, hoping for large export orders soon.”
They are prepared for a difficult period of at least two more years. Then, hopefully, all debts will be paid off.
“We will have to sacrifice certain luxuries and lead a simpler life.”
He calls this a ‘blessing in disguise’, meaning: is this a curse or a blessing? Less luxury leads to more connection with nature and more appreciation for the things that truly matter in life.
Nihal: “We are not giving up hope. If we all work together 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.
What we can do to help the 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 nature is beautiful. Moreover, they can make good use of 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 farmers or buying products through the shortest chain and being willing to pay a fair price for the products, you help the farmer and encourage the exporter to continue working 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 the 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? Easy. Order the most delicious single-origin spices, and we will ensure that the farmers receive a fair price.