Sri Lanka Faces Deepening Fertiliser Crisis Amid Global Supply Chain Disruptions

Sri Lanka’s agricultural sector is confronting a renewed fertiliser crisis as escalating tensions in the Middle East disrupt global supply chains, threatening the nation’s plantation output and food security. The Planters’ Association of Ceylon has warned that soaring prices and tightening supplies could severely undermine agricultural productivity, particularly for key export crops such as tea, rubber, and coconut.

The crisis stems largely from the near-total closure of the Strait of Hormuz, a critical maritime route through which approximately one-third of global fertiliser raw materials are transported. Shipping traffic through this strategic chokepoint has reportedly declined by 90%, triggering widespread ripple effects across international markets. Iran, one of the world’s largest urea suppliers, has seen its exports hampered by regional instability, further constraining global availability.

For Sri Lanka, which relies heavily on imported fertiliser to sustain its plantation agriculture, the implications are immediate and severe. Industry analysts note that any disruption during the next two to four months could directly impact annual yields, potentially reducing export earnings and exacerbating pressure on the country’s already fragile balance of payments.

Recent data underscores the urgency of the situation. Sri Lanka’s most recent fertiliser shipment—25,000 metric tonnes purchased at US$650 per metric tonne—has been exhausted. The next consignment of 25,000 metric tonnes, expected before May 15, is being procured at US$800 per metric tonne, reflecting a significant price surge driven by global scarcity.

In response, the government has increased fertiliser subsidies to as much as Rs. 18,000 for additional crops, a measure welcomed by industry stakeholders. However, the Planters’ Association cautions that such interventions may not fully offset the structural challenges posed by prolonged global shortages and rising costs.

The current crisis evokes painful memories of the 2021 fertiliser ban, which devastated agricultural productivity and required years of recovery. As the sector was gradually regaining stability, it now faces an external shock beyond domestic control, heightening concerns about long-term resilience in the face of geopolitical volatility.

With global grain markets also vulnerable to fertiliser shortages in major exporting nations such as India, Russia, and Australia, Sri Lanka’s exposure to fluctuating food prices remains high. The plantation sector’s output is expected to face severe repercussions unless supply chains stabilize and affordable access to essential nutrients is restored.