Sri Lankan government looks at PPP for agriculture logistics network
The government’s economic policy framework titled, “V2025; A Country Enriched” highlights the need to establish an “Agriculture Logistics Network”by forming a public–private partnership (PPP) in order to optimise storage and transportation of food and reduce the current high levels of depletion.
“We will encourage the private sector to modernise the agriculture sector and introduce efficient and stable modern value chains through models such as trader-farmer contracts, contract grower systems and agriculture mega zones,” the document read.
“We will introduce an Agriculture Logistics Network (ALN) through a PPP that incorporates state-of-the-art solutions for storage and transportation, ICT to improve information asymmetries, and real-time monitoring for effectiveness,” it further stated.
The government of Sri Lanka intends to introduce comprehensive reforms to the agriculture sector in order to strengthen the country’s food security and focus development efforts in neglected districts to foster inclusive growth.
2015 records indicate that 4.7 million, out of the country’s 20+ million strong population was undernourished and malnutrition was reported to show excessivediscrepancies from region to region, with the estate sector recording disproportionately high levels of malnutrition.
“Government policies have exacerbated food insecurity with ad hoc policy changes in import duties and non-tariff barriers. Sri Lanka’s agriculture sector suffers from low productivity that leads to food insecurity and poverty. Productivity of domestically grown food crops, including rice, has stagnated at unimpressive levels even by developing country standards,” the V2025 document further said.
OSL TAKE:
Since the Government of Sri Lanka’s official economic policy document promotes the concept of PPPs in agriculture, it will provide many opportunities for interested parties. Forming PPPs in the agriculture sector could provide investors with a certain level of assurance on risk mitigation.
The government has established a PPP office attached to the Finance Ministry in order to facilitate the formation of projects in various sectors.
| Article Code : | VBS/AT/08092017/Z_7 |