Sri Lanka moves to stop fraud in Government paddy purchases

Sri Lanka is considering new measures to prevent traders from posing as farmers and selling paddy fraudulently to the government at the guaranteed price.

The proposals were discussed at a meeting of the Ministerial Consultative Committee on Agriculture, Livestock, Lands and Irrigation, chaired by Minister K.D. Lal Kantha, at Parliament on July 8, 2026.

The Committee held an extensive discussion on purchasing paddy efficiently at the government-guaranteed price, preventing fraud and irregularities, and ensuring that farmers receive a fair price.

One proposal was to provide paddy purchasing centres with lists of farmers registered with the Department of Agrarian Development as fertiliser subsidy beneficiaries.

This would help officials confirm whether those selling paddy to the government are genuine farmers and prevent businesspeople from falsely claiming to be farmers.

The Committee also discussed confirming the amount of paddy each farmer is allowed to sell based on the number of acres cultivated. Officials said this could prevent fraudulent sales of unusually large quantities of paddy.

Attention was also drawn to the need for a standardised weight-based system when purchasing paddy.

Officials informed the Committee that steps are being taken to increase the government’s storage capacity by renting warehouses belonging to cooperative societies and private owners.

The Committee said farmers could receive a faster and fairer service if cooperative societies and the Paddy Marketing Board jointly purchased paddy at the guaranteed price. It also stressed the need to expand storage facilities and strengthen transport services.

Other matters discussed included restoring old canal systems in the Kalutara and Ampara districts and examining whether they could be used for tourism activities.

The Committee also considered the legal and practical difficulties in issuing land permits to people living near wildlife reserves and archaeological reserves.

Deputy Minister of Agriculture and Livestock Namal Karunaratne, Deputy Minister of Land and Irrigation Aravinda Senarath, other deputy ministers, Members of Parliament and officials from the Ministry of Agriculture, Livestock, Land and Irrigation attended the meeting.