In brief
On November 2, 2026, Sri Lanka announced it would extend the paddy cultivation subsidy to 12 additional food crops for the 2026‑27 Maha season, doubling the previous rate to 60,000 rupees per hectare. The move, backed by Deputy Minister Namal Karunaratne, covers up to two hectares per farmer and is expected to cost 16 billion rupees. While the policy aims to diversify food production, questions remain about crop selection, distribution logistics, and long‑term sustainability.
In Colombo on Monday, Sri Lanka’s government announced a plan to broaden the paddy cultivation subsidy to 12 additional food crops during the 2026‑27 Maha cultivation season. The new policy will let farmers receive the same 60,000‑rupee‑per‑hectare subsidy that paddy growers currently earn, but only on paddy farmland and for a maximum of two hectares per farmer.
The initiative marks the first time the country will apply a paddy subsidy to other crops. Before the change, subsidies capped at 30,000 rupees per hectare for paddy and a handful of field crops, and were limited to one hectare per farmer. The cabinet approved the higher level in mid‑October, and the expense is projected at 16 billion rupees.
Deputy Minister of Agriculture and Livestock Namal Karunaratne, who is named in the announcement, said the government had already begun distributing cultivation subsidies at twice the rate provided before it took office. He noted that the additional subsidy would support farmers cultivating a range of food crops, although the rural press has not yet released a list of the 12 entries.
During a media briefing, Karunaratne confirmed the persuasive goal of the policy: to encourage farmers to diversify their yields while remaining in a paddy‑based system. He added that the subsidy would be funneled through the existing government distribution network, which has been praised by farmers’ groups for its speed and reliability.
Adarena, a local outlet reporting on the plan and the cabinet’s decision, kept the names of the added crops under wraps, citing a confidentiality clause that is reportedly common in ministry‑level policy drafts. The government has promised that the new crops will cover basic foods such as millets, pulses, and a selection of vegetables, but the official list has not yet been published.
Analysts point to the policy’s dual role. It could help distribute the risk of crop failure and improve soil health by rotating food crops on paddy fields. Yet they warn that the central system’s capacity to monitor the quality and quantity of the new crops will be tested, as will the ability to ensure that only eligible farmers receive the supplementary subsidy.
There remains uncertainty about how the subsidy will affect local markets. Some farmers fear that the influx of new food crops could depress prices, while others predict that increased variety may improve food security. The government has pledged to monitor both economic and environmental impacts, but no detailed assessment plan has been released.
Key unresolved issues include: which 12 crops will be eligible; how the expansion will interact with existing drought‑resistance programs; how the subsidy will be funded beyond the projected 16 billion rupee budget; and whether the initiative will ultimately improve the livelihoods of rural communities.
