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Crop damage compensation:  Farmers slam crop compensation gaps

Crop damage compensation: Farmers slam crop compensation gaps

25 Sep 2026 | BY Buddhika Samaraweera and Dhanushka Dharmapriya


  • Compensation largely limited to maize, paddy, potato, big onion and chilli
  • Paddy payouts of Rs 7,000–40,000 per acre deemed inadequate
  • Dambulla cold storage project stalled as contractor cites rising costs


Farmers have hit out at what they describe as major gaps in the Government’s crop damage compensation scheme, claiming that despite farmers cultivating around 25 to 30 types of crops, compensation is effectively being provided for only a handful of them.

National Convention of Farmers Co-Convenor Wimal Waththuhewa told The Daily Morning that although the Government had stated that compensation was available for 10 types of crops, farmers were receiving compensation for only a limited number, including maize, paddy, potato, big onion and chilli.


“Generally, when you take vegetables, grains and paddy, around 25 to 30 crops are cultivated,” he said.


Waththuhewa also criticised the compensation provided for paddy, saying the payments were inadequate compared to the losses farmers could suffer from crop damage.

“Even for paddy, farmers get only Rs 40,000 per acre. That amount is given only when a field is damaged close to the harvesting stage. For damage that occurs during the other stages, they give around Rs 7,000 or Rs 8,000. Considering current conditions, at least Rs 100,000 per acre should be given,” he said.

Agriculture Minister K D Lal Kantha was unavailable for comment.

Sri Lankan farmers cultivate a wide range of crops across the country, with paddy remaining one of the country’s main agricultural crops. However, cultivation remains vulnerable to floods, heavy rainfall, drought and damage caused by wild animals. In recent times, the possible effects of El Niño have also drawn attention, as related weather changes may cause damage to cultivations.


Meanwhile, construction of the agricultural cold storage complex at the Dambulla Dedicated Economic Centre has been halted after the estimated expenditure reportedly exceeded the initially projected cost, prompting farmers and traders at the market to call on the Government to resume the project.


Speaking to *The Daily Morning*, Centre Traders’ Organisation President C.A. Siriwardena said that vegetables and onions were currently available at the market without severe shortages or considerable price hikes. However, he warned that the harvest could be at risk of perishing due to the prevailing rainy weather because of the lack of adequate cold storage facilities.


“The contractors started constructing the cold storage facility using Government funds, and it has now been built to some extent. However, the contractor has given up as the earlier estimated cost has exceeded the actual cost,” he said.


“The Government should do something about this or take legal action against the contractor. Otherwise, this will be a huge loss to the Government,” he said.


According to Siriwardena, agreements had been signed to complete the project for Rs 5.5 billion.


“For instance, these days, B onions are available at a very good price. But, if they perish due to the rain, that will be a loss. If we had the cold storage facility by now, we could have separated the harvest into multiple chambers and stored it for later use, at a very low cost to the farmer,” he added.


The Dambulla agricultural cold storage complex is the country’s first 5,000-metric-tonne temperature- and humidity-controlled warehouse, intended to reduce post-harvest agricultural losses and stabilise market prices.


The facility is expected to reduce post-harvest waste, estimated at 35–40%, and help prevent seasonal price fluctuations in fruits and vegetables.



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