COLOMBO, Sri Lanka – 28 August 2026 – In a critical move to support the nation’s agricultural sector, the Sri Lankan government has allocated an urgent sum of Rs. 3,000 million (three billion rupees) to provide agricultural insurance compensation for crops severely affected by the prevailing drought conditions exacerbated by El Nino. The Ministry of Agriculture, Livestock, Land and Irrigation confirmed the allocation today, underscoring the government’s commitment to farmer welfare amidst environmental challenges.
The decision comes as dry weather conditions continue to impact key agricultural districts across the island, leading to significant crop damage. Paddy, maize, and other vital cultivations have suffered extensively, particularly in regions such as Moneragala, Polonnaruwa, Hambantota, Anuradhapura, and Ampara.
Widespread Crop Damage Identified
Assessments have already identified substantial losses, particularly in paddy cultivation. Approximately 8,000 acres of farmland, belonging to an estimated 7,000 farmers, have been damaged across the affected districts. Specific figures reveal the extent of the crisis:
- Moneragala: 1,401 acres
- Polonnaruwa: 1,259 acres
- Hambantota: 783 acres
- Ampara: 1,055 acres
- Anuradhapura: 1,923 acres
These figures highlight the urgent need for intervention to mitigate the economic hardship faced by thousands of farming families.
Expedited Compensation Process Underway
The allocated Rs. 3,000 million is specifically earmarked for the swift payment of compensation for these crop damages. To ensure efficiency and accuracy, dedicated teams comprising field officers from the Agricultural and Agrarian Insurance Board (AAIB) and Agricultural Research and Production Assistants (ARPAs) from the Department of Agrarian Development are actively visiting cultivated lands in the drought-affected areas to conduct thorough damage assessments.
The government’s primary objective is to release these compensation funds rapidly, ideally before the commencement of the next cultivation season. This proactive approach aims to provide immediate relief and enable farmers to prepare for future agricultural activities without undue financial burden. The Minister of Agriculture, Livestock, Land and Irrigation has issued direct instructions to expedite compensation payments, particularly for damaged paddy fields.
Compensation Details for Affected Farmers
Under this urgent relief scheme, compensation will be provided for six critical crops:
- Paddy
- Maize
- Big Onion
- Potato
- Soybean
- Chili
Eligible farmers will receive compensation at a rate of Rs. 100,000 per hectare, with payments capped at a maximum of 5 acres per farmer.
Reporting Damages and Seeking Assistance
Farmers who have experienced crop damage due to the prevailing dry weather conditions and have not yet reported their losses are strongly urged to do so as soon as possible. They can report damages by meeting with Agricultural Research and Production Assistants (ARPAs) of the Department of Agrarian Development or the Development/Field Officers of the Agricultural and Agrarian Insurance Board (AAIB). Alternatively, damages can be recorded in the designated damage notification book maintained at Agrarian Development Centers.
For further details or assistance, farmers can contact the Agricultural and Agrarian Insurance Board directly by calling their short code: 1918.
This substantial allocation reflects the government’s unwavering commitment to supporting Sri Lanka’s vital agricultural community through challenging times, ensuring food security and economic stability for its farmers.
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