Sri Lanka approves Rs. 16 billion for fertiliser subsidies

The Sri Lankan Cabinet has approved Rs. 16 billion in fertiliser assistance for the upcoming 2026/27 Maha season. Under this program, eligible farmers cultivating paddy and other approved field crops will receive Rs. 30,000 per hectare, capped at a maximum of two hectares per farmer.

The subsidy aims to reduce immediate cultivation costs and protect domestic food production by easing the financial burden on farming households. However, the allocation has raised questions regarding the long-term sustainability of the agricultural economy and whether such subsidies address the underlying profitability and economic structure facing local cultivators.