Sri Lanka has approved a new international cooperation project aimed at strengthening its sugarcane sector through technical collaboration with Brazil, one of the world’s leading sugar producers.
The project will be implemented jointly by the Ministry of Industry and Entrepreneurship Development, the Sugarcane Research Institute and the National Science Foundation, together with the Brazilian Cooperation Agency and the Federal University of São Carlos. Authorities said the initiative was developed in response to weaknesses and challenges currently affecting the domestic sugarcane industry, with the aim of drawing on international technical expertise to improve the sector.
Sri Lanka currently imports nearly 90% of its sugar requirement, resulting in a significant outflow of foreign exchange. The project is expected to help raise local sugarcane yields and sugar output while improving the technical capacity of stakeholders through training and knowledge-exchange programmes. It also aims to promote value addition, encourage the efficient use of by-products and strengthen institutional capacity within the sector.
A stronger domestic sugar industry would ease pressure on the import bill at a time when a weaker rupee has pushed up the cost of imported essentials such as sugar, dhal and rice. Sugar pricing and taxation have also featured in recent policy disputes, including a Supreme Court case over a contested sugar tax concession.
