As Sri Lanka’s economy slowly recovers from one crisis after another, the 2021 scandal involving fertiliser imported from China now stands as a stark reminder of how political negligence, administrative lapses, and a lack of accountability can inflict lasting harm on the country. The story of the contaminated Chinese organic fertiliser deal, which cost the nation over US$11.7 million and left thousands of farmers in hardship, is more than a cautionary tale, it is a reminder that Sri Lanka must take action against those who misused state funds.
The story began in 2021 when the Gotabaya Rajapaksa administration abruptly banned chemical fertiliser and pesticides, pivoting the nation’s agriculture towards organic methods almost overnight. The Cabinet quickly approved the import of organic fertiliser worth US $6.9 million from Qingdao Seawin Biotech, a Chinese firm.
Laboratory testing by Sri Lanka’s Plant Quarantine Service and several independent laboratories revealed the presence of harmful pathogens and bacteria in samples from the Chinese shipment. Experts warned that the bacteria detected could devastate staple crops such as potatoes, onions, and carrots, threatening food security for millions.
Despite the shipment being en-route to Sri Lanka, the Plant Quarantine Unit refused entry, citing clear breaches of national standards. Letters of Credit were withheld by state fertiliser companies, and the Colombo Commercial High Court issued an injunction to prevent payment. China responded by blacklisting the People’s Bank.
At the centre of the ensuing crisis was then-Agriculture Minister Mahindananda Aluthgamage, who recommended that a Chinese inspection company certify the fertiliser’s quality. Although this company claimed the fertiliser was safe, Sri Lankan authorities maintained their rejection. A ministerial committee, however, produced an ambiguous report suggesting that while the fertiliser might not contain dangerous pathogens, it could include “beneficial organisms,” a finding that lacked clarity. In this background, legal advice from the Attorney General recommended a compromise: pay 75 percent of the first shipment’s value, provided a US$5 million performance bond was secured to minimise state losses.
The Cabinet approved this with the intention of capping losses at US$1.7 million. However, the Ministry failed to act on this advice, and the performance bond was never collected. As a result, Sri Lanka’s direct financial loss ballooned to US$6.7 million.
Compounding the financial blow was the protracted delay in resolving the dispute. The fertiliser ship remained anchored off Sri Lanka’s coast for months. The lack of fertiliser during the critical Maha season left thousands of farmers unable to plant or forced them to use substandard inputs, slashing yields and pushing rural families deeper into debt. The scandal drained over US$11.7 million from a cash-strapped nation and brought untold hardship to ordinary citizens. For a small, crisis-hit economy like Sri Lanka, such losses are devastating.
Most troubling of all, say critics, is the pattern of impunity. Despite clear evidence of mismanagement and warnings from technical experts, no senior official has been held to account. Cabinet directives, legal safeguards, and scientific recommendations were routinely ignored or overridden, exposing deep flaws in the country’s procurement and oversight systems.
For the thousands of farmers left to count their losses, and for the broader public still reeling from economic shocks, the demand for accountability is urgent.
There are calls for an independent and impartial investigation into the actions of all those involved, including former Minister Aluthgamage. Many say only such a probe can set a new standard for transparency and governance in Sri Lanka.
As the dust settles on this scandal, one thing is clear: the US$11.7 million lost is more than a number, it is a symbol of what happens when duty to the public is abandoned. Sri Lankans deserve answers, accountability, and, above all, the assurance that such a betrayal will not be repeated. -RK
