Cabinet approves Rs. 2.5 b top-up for Paddy Marketing Board as Yala season purchases continue

Thursday, 17 September 2026 05:28 - - {{hitsCtrl.values.hits}}

Fresh funding to cover shortfall in key paddy-growing districts as harvest continues in Anuradhapura, Polonnaruwa and other areas
Cabinet Spokesman Dr. Nalinda Jayatissa says Board has already bought 67,156 tons against original target of 35,500 tons with Ampara District alone accounting for Rs. 2.35 b in purchases

The Cabinet of Ministers on Monday approved an additional allocation of Rs. 2,500 million to the Paddy Marketing Board, on a reimbursement basis, to ensure the continued purchase of paddy under the 2026 Yala season procurement program.

Addressing the weekly post-Cabinet meeting media briefing, Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said the additional funding was needed to ensure uninterrupted paddy purchases in affected districts as the harvest continues.

He said the Paddy Marketing Board had earlier received Rs. 6,000 million from allocations under the Agriculture, Livestock, Lands and Irrigation Ministry to carry out the Yala season paddy purchase program, and had been using those funds to purchase paddy from farmers. However, with the harvest still ongoing in the districts of Anuradhapura, Polonnaruwa, Puttalam, Mannar and Mullaitivu, as well as in the Mahaweli B, C and H zones, it was observed that funds currently allocated for those areas were insufficient to meet demand.

“To address the shortfall, the Cabinet approved the release of a further Rs. 2,500 million to the Paddy Marketing Board, drawn from the additional Rs. 7,500 million previously allocated to the Fund at the Agriculture, Livestock, Lands and Irrigation Ministry for implementing the 2026 Yala season paddy procurement program,” Dr. Jayatissa said.

Responding to questions, Dr. Jayatissa revealed that actual paddy purchases have far outpaced initial projections. “The original Rs. 6,000 million allocation was intended to purchase 35,500 tons of paddy, to be stored across 143 storage facilities. Now, we have purchased 67,156 tons at Rs. 8,221 million. This additional sum of Rs. 2,500 million is being provided to facilitate the recovery of these funds,” he said.

He added that purchases have continued to grow even beyond that figure, noting: “We have purchased over 30,000 tons more at present”, suggesting total procurement volumes are continuing to climb as the harvest progresses in the remaining districts.

Dr. Jayatissa singled out Ampara district as a significant contributor to the procurement effort, noting that 19,426 tons of paddy had been purchased from farmers there alone, worth Rs. 2,350 million.

The additional Rs. 2,500 million allocation is expected to ensure the Paddy Marketing Board can continue purchasing paddy without interruption as harvesting wraps up in the remaining districts and Mahaweli zones.

The proposal to this effect was submitted by Agriculture, Livestock, Lands and Irrigation Minister K.D. Lalkantha.