Sri Lanka’s agricultural sector has many woes and has long been in need of well-planned overhauling, based on sound policies which are practical. The impact of ad hoc decisions and arbitrary ones which are forced implemented over-night are not well-learned lessons in the sector.  The sector needs a fundamental change in its culture and perception of what is to do business in the 2020’s. Further, the sector remains hindered by structural inefficiencies and a lack of entrepreneurial approach.  A change in national policy, and a transforming mindset is needed for traditional farming. As such, it is imperative that there is skill development and infusion of technology to overhaul the existing system. 

Agriculture plays a major role in Sri Lanka’s economy, with nearly 27% of the population engaged in agricultural activities. In terms of the entrepreneurship scale, however, only around 1.5% of Sri Lanka’s population is actively engaged in entrepreneurship, which is lower than in many developed countries. Moreover, the country comprises a very limited number of ‘agripreneurs’. 

The growth rate in agriculture also remains low, with the value added (annual percentage growth) of agriculture, forestry, and fishing in Sri Lanka being reported at 2.5693% in 2023. Experts have pointed out that since independence, the annual growth rate of agriculture has been nearly 2%. However, agriculture has fallen behind the development of other sectors, which has led to problems such as agrarian poverty, high food inflation, and unsatisfactory progress in the sector. One key issue is the lack of ‘agripreneurs’. With globalisation and increased urbanisation there are plenty of market opportunities in the agricultural sector for export, especially as demand for process products increases. However, the market remains under addressed by local industry. There is also significant potential for export and to widen the export basket and even within the local market for value-added processed produce, which open up various opportunities for growth.

Since entrepreneurs are key drivers of economic growth, fostering more agripreneurs in rural areas could help reduce the urban-rural disparity as well. As such, the availability and functionality of modern infrastructure plays a crucial role in supporting the growth of agripreneurship. Sri Lanka needs to build a conducive ecosystem for ‘agripreneurship’ to take off, which will spur more persons in the sector to change their mind, change the way they do things and become more efficient and market oriented. Further, some experts have been of the view that new technology such as can be used to enhance stakeholder collaboration across the value chain. It is essential that for an effective transformation in the agri sector, the Government supports farming and crop growing in rural areas by facilitating networking among farmers and entrepreneurs. There is a need for enhanced institutional support, and it is here that the Government’s role in development is vital, especially in providing financing, and market enhancement for such a transformation to take root. 

The need for robust infrastructure facilities doesn't stop with networking and financing.  Progressive farmers who are willing to take risks and invest in technology, if they are supported. If not, with high risk and low incentive to change, many will remain focused on seeking subsidies and only growing aimed at that particular crop season. As such, there is a need for providing good seeds, fertilisers, and promotion of regulations which creates adherence to Good Agricultural Practices. There is also a need for efficient transportation and market access to facilitate distribution. The current lack of a robust distribution system had significantly hindered the agricultural market.

If the bottleneck in infrastructure is addressed, and an effective programme is carried out to educate best practices and ‘agripreneurial’ skills, the sector has the potential to grow by leaps and bounds.  It is the young people who are already adopting advanced technologies such as drones to modernise agriculture, that should be the focus of the change in policy and national approach to rebuild the sector. If carried out effectively, Sri Lanka can reduce its reliance on imported agricultural produce. Which will help reduce the need for large forex reserves, build national resilience and increase export earnings.