The Agricultural and Agrarian Insurance Board stated that Rs. 1,200 million has been allocated in the 2026 Budget to compensate farmers affected by the Nilwala River salinity barrier.

The compensation will cover crop losses over seven cultivation seasons, from the 2019 Yala season to the 2022 Yala season.

Payments will be made to paddy farmers through the Department of Agrarian Development and the Matara District Secretariat.

Farmers have raised concerns since 2019 over flooding of cultivated lands linked to the salinity barrier.