Sri Lanka may be facing renewed challenges with food inflation due to a sharp rise in global fertilizer prices, as highlighted by a senior economist from the Asian Development Bank (ADB) today, October 10. During the unveiling of the Asian Development Outlook for April 2026 in Colombo, Ms. Liliya Aleksanyan pointed out that prices for non-energy commodities, especially fertilizers, have seen a notable increase in recent weeks.
“Urea prices have surged by more than 50%, and ammonia prices have risen by almost 40% since late February,” she remarked, emphasizing the importance of these materials for agricultural activities.
The significant escalation in fertilizer costs is anticipated to raise production expenses within Sri Lanka’s agricultural sector, which could lead to diminished crop yields in the forthcoming months if these trends continue. “This situation may subsequently result in higher domestic food prices and exacerbate inflationary pressures later this year,” Aleksanyan warned.
This alert comes as Sri Lanka is still in the process of rebuilding its economic foundations following recent challenges, rendering the nation more susceptible to external economic shocks.
In addition to fertilizer concerns, the economist pointed out that various global risks, including high energy prices, tightening financial conditions, and trade uncertainties, could further intensify inflationary pressures. She indicated that while energy costs are a significant worry, the rising expenses associated with agricultural inputs serve as an additional and often delayed mechanism through which global disturbances impact domestic inflation.
As Sri Lanka continues its recovery journey, the persistent increase in fertilizer prices could present a formidable obstacle to achieving food price stability and enhancing overall economic resilience.
