Sri Lanka announced on 2 November 2026 that it will extend its cultivation subsidies to farmers growing 12 additional food crops on paddy lands, offering the same subsidy amount that paddy farmers currently receive. The plan, revealed by Deputy Minister of Agriculture and Livestock Namal Karunaratne, marks the first time the government will apply paddy subsidies to other crops on paddy fields.
Karunaratne said the government had already begun distributing cultivation subsidies at twice the rate provided before he took office. He noted that the Cabinet approved a subsidy of 30,000 rupees (about 90 U.S. dollars) per hectare for paddy and other eligible field crops grown on paddy lands during the 2026‑27 Maha cultivation season, covering a maximum of two hectares per farmer.
The program was estimated to cost 16 billion rupees. According to local media reports on Oct. 15, Karunaratne subsequently announced an increase to 60,000 rupees per hectare for 13 crops, including paddy.
For the 2026‑27 Maha season, the subsidy applies to paddy and the 12 new crops, a policy described by Xinhua as a significant expansion of the country’s agriculture support scheme.
The decision was reported by the local outlet Ada Derana and subsequently covered by Xinhua. Xinhua’s editor, Huaxia, attributed the details to the deputy minister and the government’s recent policy changes.
Background: Sri Lanka has traditionally provided subsidies to paddy farmers, the staple crop that supports a significant portion of the country’s food supply. The subsidy program has been used to support farmers during periods of low yields or unfavorable market conditions. The 2026‑27 Maha season, beginning in mid‑May, is one of the country’s two main agricultural periods, the other being the Raguna season in the late winter.
With the extension, farmers growing other foods such as legumes, oilseeds, and other staple crops on paddy farms will receive financial support. This change reflects a broader effort by the government to diversify agricultural production and improve food security.
Open questions: The exact selection criteria for the 12 additional crops remain unspecified in the announcement. How the subsidy will be administered to farmers already receiving support is not fully clarified. Analysts wonder whether the increased subsidy will strain the annual agricultural budget, which is already substantial in 2026‑27.
There is also uncertainty about how the subsidy program will be monitored and whether it will lead to an oversupply of certain crops. The government has not yet provided data on projected yield outcomes or environmental impacts of expanding subsidies beyond paddy.
Financial implications were highlighted by the estimated cost of 16 billion rupees. This figure represents a significant increase compared to earlier subsidy amounts. Some observers question whether the government will need to reallocate funds from other sectors to accommodate the expansion.
Deputy Minister Namal Karunaratne emphasized that the subsidy increase was designed to support farmers “in a more balanced way” and to encourage the cultivation of a wider range of crops. His remarks were widely reported by local media.
International analysts have noted that Sri Lanka’s move aligns with regional trends where governments are seeking to diversify staple crop production. However, no direct quotes from international experts appear in the available source material.
In conclusion, Sri Lanka’s plan to extend paddy subsidies to 12 extra food crops represents a notable shift in agricultural policy. The policy’s success will depend on the implementation details, such as eligibility rules, fund disbursement mechanisms, and monitoring of crop performance. As of 2 November 2026, the government remains the sole source of information on the program’s full scope and future execution.