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Govt. to save Rs. 3.5 b annually through Eppawala

17 May 2020

[caption id="" align="alignleft" width="370"] Single superphosphate[/caption]
By Madhusha Thavapalakumar
The Government is expecting to save over 50% of the money spent annually on fertiliser imports as a result of the Cabinet’s recent decision to locally produce a substitute to the currently imported triple superphosphate. During the Cabinet meeting last week, Co-Cabinet Spokesman Dr. Ramesh Pathirana stated that about Rs. 7 billion is being spent annually on triple superphosphate imports, and this decision is expected to save over half that amount. The Cabinet of Ministers last week approved the proposal to produce single superphosphate at the Eppawala phosphate deposit instead of rock phosphate that is being produced at the moment.
Production of single superphosphate, which will be a substitute to triple superphosphate that is currently being imported by the Government, is expected to commence this year.
Plans to produce single superphosphate at Eppawala have been in the pipeline for the past few years. The Government in 2018 stated that steps would be taken to commence production at Eppawala, as Rs. 47 billion was being spent annually on phosphate fertiliser imports. However, this time, the proposal was made by Minister of Mahaweli, Agriculture, Irrigation, and Rural Development Chamal Rajapaksa due to the increased demand for fertiliser driven by increased cultivation this Yala Season. Import restrictions imposed to prevent a possible foreign exchange crisis in the future have compelled Sri Lanka to rely solely on its local harvests and as a result, local agricultural activities have expanded over the past few weeks. The current demand for fertiliser is being satisfied through fertiliser imported via the Ceylon Fertiliser Company Ltd. and Colombo Commercial Fertilisers Ltd. In February this year, state fertiliser firms ordered about 79,000 metric tonnes of fertiliser for the upcoming season. However, farmers were seen complaining about fertiliser shortage in the market. It is notable that despite the curfew imposed islandwide, agricultural activities were allowed to continue as usual. The National Fertiliser Secretariat is planning on introducing a formal mechanism to issue fertiliser. The Eppawala phosphorus deposits caught the Sri Lankan Government’s attention about 50 years ago, when around 60 million metric tonnes of phosphate was discovered within an area of four square kilometres. The deposit is considered one of the best 10 phosphate deposits in the world. However, successive governments have often been criticised for not harnessing its true potential. The deposit contains a very minimal amount of cadmium and arsenic compared other deposits around the world, where the presence of these two elements is high. These two elements are known to detrimentally affect human health. According to the Central Bank of Sri Lanka, expenditure on fertiliser imports declined last year, led by lower import volumes of urea. The expenditure was $ 221 million last year, compared to $ 261 million the previous year.

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