Cabinet approves leasing Mahaweli Authority farms to farmers and agri-entrepreneurs

Wednesday, 28 January 2026 00:06 - - {{hitsCtrl.values.hits}}

Cabinet Spokesperson and Minister Dr. Nalinda Jayatissa

The Cabinet of Ministers has approved a new framework to lease farms operated by the Sri Lanka Mahaweli Authority to farmers and agricultural entrepreneurs, shifting away from private investor-led management towards greater participation by farming communities in Mahaweli zones, Cabinet Spokesperson and Minister Dr. Nalinda Jayatissa said.

Under a Cabinet decision, the Government has decided to involve local farmers in the development of 17 Mahaweli Authority farms engaged in seed paddy production, supplementary crop seed cultivation and animal production, while retaining State ownership of the land. The move follows an earlier Cabinet approval granted in December 2022 to engage private investors under long-term leases or public-private partnership arrangements for farm management.

According to the revised policy direction of the present Government, the objective is to ensure continuous farm development, convert farms into economically viable units, meet national seed paddy requirements and improve productivity, while attracting young agricultural entrepreneurs and raising living standards in Mahaweli zones.

Cabinet approval has been granted to a proposal presented by the Minister of Agriculture, Livestock, Land and Irrigation to lease irrigated Mahaweli farm lands on a seasonal basis through auctions and contractual agreements to farmers and agricultural entrepreneurs for seed paddy production. Developed and underdeveloped but cultivable highland areas are also to be leased seasonally for the cultivation of supplementary crops and the production of supplementary crop seeds.

In addition, animal production units that have not been properly maintained or have failed to generate profits for three years or more will be leased to farmers or entrepreneurs for a maximum period of three years under a regulated leasing system.

Underdeveloped lands bearing permanent crops, as well as lands with permanent crops that have not yielded income for five years or more, will be subdivided based on accurate measurements and leased to farming communities in the relevant Mahaweli zones, following an assessment of crop yield potential and expected income.