SRI LANKA - Ministry of Finance and Planning

The demand for rice is expected to grow faster than the
local production due to the increase in population and
the people’s shift from wheat flour to rice on account
of the Government’s supportive policies. Therefore, in
order to cater to the increasing demand, it is necessary
to raise the average yield of paddy significantly.
While expanding the cultivable extent through new
lands, particularly in the North and the East, the
average yield will be increased through cultivation of
improved varieties, improving quality seed production,
adoption of advanced water management systems and
comprehensive cultivation and harvesting techniques.
With the approach of self sufficiency, farmers will
be more vulnerable to market shocks in the form of
unanticipated price slumps due to production gluts.
Key Indicator 2005 2009
Land use - Sown
extent of maha
season (‘ 000
ha)
Sown extent
of yala season
(‘000 ha)
Extent of
abandoned
paddy lands
(000’ha)
Productivity
of paddy lands
(mt/ha)
Annual
production of
paddy (mn. mt)
Provision of
quality seed
paddy
Table: 2.1.1
Statistics on Production of Paddy
Anticipated Targets
2015 2020
581 631 700 730
357 345 480 540
150 100 30 No
2.06 4.3 5.5 6.5
2.24 3.64 6.5 8.2
24 % 35% 60% 100%
It is also envisaged to ensure a remunerative price to
paddy farmers in order to ensure the sustainability
of the agriculture sector. This will be approached
by the Government through twin strategies: the
continuation of the fertilizer subsidy to reduce the
cost of production and the maintenance of a floor
price for paddy through Government’s periodic market
interventions. Similarly, fair pricing systems such as
forward contract markets will be put in place to ensure
a regular high return to paddy farmers.
Multiple irrigation services will be further expanded
while rehabilitating the existing schemes. Further, these
will be equipped with modern water management
techniques improving water usage efficiency. That
will facilitate the provision of adequate water for
cultivation during the off-monsoon periods and support
new arable land for paddy cultivation.
The traditional varieties of paddy such as heenati,
alwee, suwandal suduru samba, rathdel, and pachcha
perumal will be promoted on an organic basis. They will
be introduced to tourist hotels and among local people
who would prefer to consume them.
Rice flour processing factories will be established in
several districts including Hambantota, Anuradhpura,
Polonnaruwa and Ampara to encourage rice flour
consumption as a substitute for wheat flour, while
supplying value added products to the market. Products
of rice and allied items will be nurtured among people
such as red rice noodles and biscuits for good health.
Sri Lanka - The Emerging Wonder of Asia
To prevent this, the Government, as a top priority, will
commence supporting the production of more and
more value added products from rice which will be
propularised in the local market in the first instance
and then directed to international markets. The
presently idling resources of the Government research
institutions and local universities will be harnessed fully
for this purpose.
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