Rs. 1.2 Bn for Farmers Hit by Nilwala Flooding

COLOMBO (News 1st) - The first phase of compensation payments to farmers affected by crop damage caused by flooding linked to the Nilwala River salt barrier in Matara will commence on May 27, the Agricultural and Agrarian Insurance Board has announced.

The programme will be launched under the patronage of President Anura Kumara Dissanayake in the Malimbada area of Matara.

The compensation payments follow a detailed assessment of crop damage sustained over seven consecutive cultivation seasons, spanning from the 2019 Yala season to the 2022 Yala season.

Officials stated that compensation amounts have been calculated in accordance with the established methodology of the Agricultural and Agrarian Insurance Board, taking into account both production costs and prevailing paddy prices.

A total allocation of Rs. 1,200 million has been made through the 2026 Budget for this compensation programme. More than 5,000 eligible farmers are expected to benefit from the payments.

The move comes after Cabinet approval was granted to compensate farmers for losses incurred to paddy cultivation due to the construction of the salt barrier across the Nilwala River, which contributed to the flooding conditions that damaged agricultural lands in the area during the relevant seasons.