The Government has allocated financial provisions amounting to Rs. 1,200 million in the 2026 Budget to provide compensation for paddy cultivation losses caused by the salinity barrier constructed on the Nilwala River in 2019 by the National Water Supply and Drainage Board (NWSDB) to prevent seawater intrusion into drinking water sources in the Matara District.
Accordingly, the Government has decided to pay compensation for 07 consecutive cultivation seasons, from the 2019 Yala season up to the 2022 Yala season.
In this regard, attention has been given to the recommendations and views of the Matara District Secretary, Commissioner General of Agrarian Development (Matara), District Director of Agriculture (Matara), public representatives, ministry officials, and farmer representatives.
The Agricultural and Agrarian Insurance Board (AAIB) stated that compensation payments will be made expeditiously to farmers who reported crop damage to Agrarian Service Centres during the relevant seasons due to the impact of the salinity barrier on paddy fields in the Matara District.
Compensation for damage caused by Nilwala river salinity barrier to be expedited
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