The first phase of compensation payments to farmers affected by crop damage from 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, NewsFirst reported.
The payments follow a detailed assessment of crop damage over seven consecutive cultivation seasons, spanning from the 2019 Yala season to the 2022 Yala season. Officials said compensation amounts have been calculated using the Insurance Board’s established methodology, which factors in production costs and prevailing paddy prices.
A total allocation of Rs. 1,200 million has been made through the 2026 Budget for the programme. More than 5,000 eligible farmers are expected to benefit from the payments.
The launch follows Cabinet’s earlier fast-tracking of the compensation framework in April, in response to losses incurred to paddy cultivation due to the construction of the salt barrier across the Nilwala River. The barrier contributed to the flooding conditions that damaged agricultural lands in the area during the relevant seasons.
May 27 will be the first concrete disbursement date in a grievance that has run through three Yala-Maha cycles, and the programme provides a template the Insurance Board can extend to other infrastructure-linked crop loss disputes if it pays out smoothly.
