The Cabinet of Ministers has approved a proposal to convert 30,000 metric tonnes of paddy held by the Paddy Marketing Board (PMB) into rice and release it to the market, in a move intended to support the state paddy purchasing programme while increasing rice availability for consumers.
The decision follows a recommendation made at the 34th meeting of the Food Policy and Security Committee on 22 July 2026.
How the rice reaches the market
Expressions of interest are to be invited from rice millers registered with the PMB to process the stock, with the rice supplied in 5 kg, 10 kg, 25 kg and 50 kg packs.
Reports differ on which state body will run that process. Ada Derana and News 1st reported that Lanka Sathosa will invite the expressions of interest, while the Daily Mirror reported that the Cooperative Wholesale Trading Corporation will arrange for the paddy to be processed and packed.
The finished rice is to be distributed through Lanka Sathosa outlets, the co-operative network and private sector retailers.
A price committee — appointed under a Cabinet decision of 15 December 2025, and drawing officials from the PMB, Lanka Sathosa, the National Institute of Post Harvest Management and the Hector Kobbekaduwa Agrarian Research and Training Institute — has determined the paddy-to-rice conversion rate.
Purchases at 27,458 MT
Separately, Cabinet Spokesman Minister Nalinda Jayatissa said the government has purchased 27,458 metric tonnes of paddy so far against a planned total of 39,500 metric tonnes, leaving it about 12,000 tonnes short of its initial target. Further purchasing is planned once that target is met.
There are 105 paddy purchasing centres operating across the country, with another 40 due to open.
Of the Rs. 6 billion allocated for the overall purchasing programme, Rs. 3.302 billion has been spent to date, the minister said.
Ampara district has supplied the largest volume at 13,975 metric tonnes, followed by Anuradhapura with 4,073 tonnes and Vavuniya with 1,525 tonnes.
