SRI LANKA REMAINS FOCUSED ON FOOD SECURITY; WILL

UNCLAS SECTION 01 OF 02 COLOMBO 000878 SIPDIS EEB/TPP/MTAA/ABT FOR GARY CLEMENTS AND MIKE LURIE OFFICE OF THE COUNSELOR FOR MARISA PLOWDEN E.O. 12958: N/A TAGS: CE EAGR EAID ETRD PREL UNGA SUBJECT: SRI LANKA REMAINS FOCUSED ON FOOD SECURITY; WILL ATTEND UNGA MEETING REF: A. STATE 58996 ¶B. STATE 93894 ¶1. (U) SUMMARY: EconOff delivered REF points to Ms. Janaki Kuruppu, the President's top food security advisor. Kuruppu outlined a number of actions items the GoSL has taken since the food crisis of 2008 and expressed interest in participating in the Secretary's upcoming food security meeting in New York. End Summary. ¶2. (U) EconOff met with Kuruppu, Director of the Presidential Secretariat and head of the President's Cabinet Sub-Committee on Food Security on September 10. Econoff shared with Kuruppu the Secretary's five principles for global action on food security (REF A) as well as REF B's letter of invitation to the September 26 meeting at the UN General Assembly and the draft statement. Kuruppu noted that the GSL has focused on food security since the 2008 global food crisis. Food prices indeed increased significantly at that time, and key trading partners (India, Vietnam) halted exports to Sri Lanka, further exacerbating the problem. Janaki also noted that, while outright hunger is fairly rare in Sri Lanka, under- and mal-nutrition remains commonplace and cause for concern. ¶3. (U) In June 2008, the President created and convened the Cabinet Sub-Committee on Food Security -- an inter-ministerial committee involving eight ministries (agriculture, livestock, trade, utilities, transportation, environment, consumer affairs, and labor) -- to tackle the problems faced by both farmers and consumers. The committee met weekly until hostilities in the north and east of the country usurped all other priorities in February 2009. Last month, the committee resumed meeting and agreed to meet on a monthly basis. "The food crisis came and went, and prices are lower than before," noted Janaki. "It's difficult to maintain momentum, but the President and others recognize that the problem could return, and Sri Lanka is not safe." ¶4. (U) Sri Lanka imports many essential commodities such as sugar, milk powder, onions, wheat, and lentils. The Sub-Committee has focused on increasing production of these and other items to avoid scarcity and improve security in the future. To achieve this goal, the GSL is urging farmers to move away from the "two-season" harvesting method toward year-round cultivation since favorable conditions for farming exist in Sri Lanka during most of the year. This could help alleviate, for example, steep price fluctuations for certain items during different periods of the year. According to Janaki, the Sub-Committee has already recommended five projects to improve the food security situation in Sri Lanka, and more are being considered. ¶5. (U) For example, the supply chain is corrupted, with middle-men earning more than farmers and consumers (especially the urban poor) paying higher prices. The GSL has proposed opening five agricultural retail centers (two have already opened in Colombo, in December 2008 and April 2009 respectively) which bring the rural farmer and urban consumer closer together. Prices are lower at the centers (while being cautious not to undercut traditional retailers) and farmers receive more for their produce. Furthermore, post-harvest waste is huge problem in Sri Lanka, where up to 40% of all produce is lost (mainly in transit) before it reaches the consumer. While recognizing that the road system in the country needs help, a quick-fix solution proposed encourages farmers to use plastic crates rather than the traditional gunny bags (burlap sacks) to transport their goods. It is estimated that using plastic crates could lower waste by up to 70%. The GSL is working with local crate suppliers to ensure lower prices for farmers during this transition. ¶6. (U) The GSL Department of Agriculture has designated certain crops as "crop leaders" and oversees the development of these essential items -- including rice, maize, finger millet, onions, chili, green gram, cowpea, soy beans, black gram, ground nuts, grapes, pomegranates, oranges, bananas, COLOMBO 00000878 002 OF 002 papaw, pineapple, beans, tomatoes, yams, potatoes, and export crops like ginger and turmeric. Furthermore, since only 20% of the milk consumed in Sri Lanka is currently produced in-country, the GoSL is developing a new policy to dramatically increase dairy production on the island. (Note: USAID has programs to assist the local dairy industry. End Note.) Janaki did not expand on the efforts but did note her hope that consumers would again begin to drink fresh milk vice imported milk powder as a result. She did highlight the need for proper information dissemination for farmers on all aspects of agriculture including production, prices, stocks, pest/disease, and other issues. As a result, the Sub-Committee proposes an agriculture information system with as many as 550 centers across all regions of the country to collect information and assist farmers. This proposal is still in its early stages but is "a vital part of our food security program." ¶7. (U) In conclusion, Janaki noted her interest in representing the GSL at the food security meeting in New York. She will be in the United States on a Voluntary Visitor program for the coming two weeks and will extend her stay by a day to allow her participation. Janaki also noted that she would share the points from REFS A and B with interested ministries and would report back prior to the UNGA meeting. EconOff will report any follow-up septel. Please contact Ken Kero-Mentz with any additional requests on this matter. ¶8. (U) COMMENT: President Rajapaksa has emphasized agricultural self-sufficiency as a major goal of his administration. The GSL often supports small rice farmers, with very high fertilizer subsidies, rather than encouraging production of higher value-added crops for export. The GSL also emphasizes small landholdings for subsistence agriculture, although the land could be more efficiently farmed in larger holdings. Still, despite the differing strategies, both the USG and GSL view food security as an important common goal, and there is potential for cooperation. End Comment. BUTENIS