2026-02-18 / debate: Special Commodity Levy Act Order, Customs Ordinance Resolution, Motor Traffic Act Regulations 2026-02-18
Hon. Suranga Rathnayaka criticised the government's tax and import policies, arguing that a Rs. 80 per kilo levy on imported potatoes fails to protect local farmers, citing a collapse in domestic potato production from 117,000 metric tons in 2019 to approximately 17,000 metric tons today, and alleging that an import racket undermines fair pricing for both farmers and consumers. He questioned how the approximately US$37 million collected annually from potato import duties has been used to support local agricultural development. He further raised concerns that paddy farmers in Polonnaruwa are receiving only Rs. 80 per kilo despite government promises of Rs. 150, while rice prices for consumers remain high and millers continue to profit. Additionally, he demanded the immediate payment of disability and elderly allowances, which he stated had not been disbursed for two months.
Thank you, Hon. Presiding Member.
On SCL measures affecting farmers and consumers: the Government’s tax structure seems to suit racketeers rather than farmers or consumers. A levy of Rs. 80 per kilo on imported potatoes makes little sense. The current local production cost per kilo is around Rs. 220. In 2019, we harvested about 117,000 metric tons of potatoes; today it has fallen to around 17,000 metric tons. Why such a collapse? Potatoes are brought from Pakistan at far lower prices while Sri Lankan consumers pay much more, and a large-scale racket operates. Even if the importer pays Rs. 40 duty per kilo, the foreign producer allegedly kicks back a portion to the importer—making control impossible and fairness elusive. The Government collects about US$37 million a year this way; what has been done with it to develop the local potato farmer?
Paddy harvesting is underway. In Polonnaruwa, farmers are being paid around Rs. 80 per kilo—after big promises of Rs. 150. Past price increases benefited large millers—buying luxury cars and private jets—while today, with paddy prices down and millers profiting, there is no move to reduce rice prices for consumers.
Moreover, for the past two months disability allowances and elders’ allowances have not been paid. Instead of rhetoric, provide these reliefs to the people. Thank you.