Q: How does agriculture contribute to the national economy? 

A: Sri Lanka’s post-independence governments have consistently prioritised agriculture, investing heavily in infrastructure such as the Gal Oya, Mahaweli and Minneriya irrigation systems, and providing subsidies to farmers.

Nearly 26 percent of the national labour force, approximately a fourth, is engaged in agriculture, and 38 percent of the country’s land area is devoted to agricultural activities. Despite this extensive resource allocation, agriculture’s direct contribution to GDP remains at around eight percent.

However, agriculture’s importance extends beyond numerical contributions: it ensures food and nutritional security of the country, which is a critical concern in the face of global climate change.

Furthermore, agriculture plays a vital socioeconomic role – it supports rural livelihoods, prevents excessive migration to urban areas and reduces associated social challenges.

As one of Sri Lanka’s leading agribusiness companies, we believe there is an urgent need to enhance productivity and elevate agriculture from a subsistence sector to a commercially viable industry.

Waruna Madawanarachchi
Managing Director
CIC Agri Cluster

Q: Is the local agriculture sector leveraging technological advancements? 

A: The adoption of technology in Sri Lanka’s agriculture sector remains limited. While some progress has been made, most agricultural operations are still manual and largely subsistence-based. The small size of landholdings traps farmers in a cycle of low productivity and limited income. Without surplus funds, investments in advanced technology remain out of reach.

Moreover, excessive reliance on government subsidies and handouts discourages commercial thinking and innovation. Attracting tech savvy youth is critical to modernising the sector, requiring a mindset shift at the farmer and policy levels.

Q: Could you highlight some exceptional local agricultural products and their impact on the global market? 

A: Sri Lanka’s agricultural identity is deeply rooted in iconic products such as Ceylon tea. Similarly, Sri Lankan spices – including cinnamon, cloves and cardamom – are highly sought after in markets such as the US. The demand for herbal products including Ayurvedic remedies, herbal teas and other wellness-oriented products is another area of growth.

Superfoods such as moringa and jackfruit-based vegan products have also carved out a niche in markets where organic and health focused items are in high demand. Sri Lanka also produces speciality agricultural products such as low glycemic index rice varieties for health conscious global consumers.

Given its limited landmass, Sri Lanka is unlikely to compete as a mass producer in the world market. By focusing on niche markets and speciality products however, it can enhance its reputation for quality and authenticity.

Q: How can agriculture-based entrepreneurship be encouraged? 

A: One of the key challenges in agriculture is attracting youth to the sector. To address this, the sector must integrate technology into the agro-value chain from production to processing, packaging and marketing.

Partnerships between the government and private enterprises can unlock underutilised resources while technology driven solutions can modernise farming and attract the younger generation.

Q: What are the latest developments or upgrades in your product and service portfolios? 

A: As a leading agribusiness company in Sri Lanka, we have made strides to expand the product and service portfolios across the agro-value chain. Key initiatives include locally developing high-yield hybrid vegetable seeds and hybrid coconut seedlings, and introducing high-performance new generation fertilisers to Sri Lankan growers.

Similarly, eco-friendly fertilisers and safer chemicals (in classes 3 and 4) have been added to the portfolio. In digital innovations, a mobile app was launched to offer advisory services covering over 20 crops, enabling farmers to connect with experts and send images of disease affected plants to access the best advice to sort out field problems.

After many years of research, we developed speciality products such as low glycemic index rice suitable for health conscious consumers.

We also offer advisory and testing services for water and soil, helping farmers to optimise fertiliser use and ensure water quality for agriculture.

Q: What are your organisation’s plans going forward? 

A: The organisation has laid out an ambitious road map centred on productivity enhancement, value addition and technology integration to transform the agricultural sector.

We are partnering with the government under public-private partnership (PPP) initiatives to drive productivity enhancement in major crops to address inefficiencies and help maximise the potential of limited agricultural resources.

Moving away from exporting raw materials, the organisation aims to add value to agricultural produce, enabling the export of premium processed goods that command higher returns in international markets.

Digital applications across the entire value chain will continue to be promoted to attract younger generations while increasing efficiency and decision-making capabilities for farmers.

With climate change posing challenges to traditional farming methods, plans are underway to invest in protected agriculture to ensure continuous production despite unpredictable weather patterns.

The organisation is developing crop varieties tailored to withstand adverse conditions such as drought and high salinity. By collaborating with international partners, the introduction of smart agricultural inputs will help farmers adapt to changing agro-climate conditions.

Connecting small-scale producers to broader networks and resources will remain a core focus, to integrate them into value chains and ensure access to modern technologies, expertise and markets.

The company’s forward-looking initiatives reflect our commitment to fostering innovation and creating value for farmers and the economy.

– Compiled by Yamini Sequeira

Telephone 2359359  |  Email info@cicagri.com  |  Website www.cic.lk