Milton Friedman said that if you put the government in charge of the Sahara Desert, there would be a sand shortage. What the Sri Lankan government has done is almost as unbelievable. There are few better places in the world for agriculture. Sri Lanka is a warm, tropical island with plenty of annual rainfall, perfect for growing rice, tea, cocoa, and spices, and located along numerous ocean-trade routes for easy market access.

With the addition of modern fertilizers and farming techniques, the country went from subsistence farming to commercial farming. Sri Lanka had been self-sufficient in rice production since 2005. A 20-year-old Sri Lankan has seen the country’s GDP per capita roughly double over his lifetime. In 1990, Sri Lanka’s GDP per capita was about $2,000 greater than in nearby India. By 2020, it was more than $6,000 greater.

But after the fertilizer ban went into effect, rice production fell by 20 percent in only six months. The country had to import $450 million worth of rice to make up the difference, and rice prices still went up by 50 percent. Tea exports plummeted, costing the economy $425 million. The government reversed parts of the policy in November 2021, but the damage was already done.