Hon. Susantha Kumara Nawarathna

¶ 01 Thank you, Hon. Deputy Speaker. I am pleased to join this debate a few days after the 2026 Budget was presented. While many in the Opposition were dreaming of becoming President in three months, the NPP Government has presented a strong Budget for 2026, strategically framed around six pillars: achieving sustainable, broad-based growth; export diversification for higher income; ensuring debt sustainability; strengthening the productive economy; eradicating rural poverty; and digitalization.

¶ 02 I want to focus on agriculture because current issues—onion and potato farmers on the streets—require attention. We intervened through SATOSA and private partners like Cargills to purchase onions, though volumes may not have been sufficient. To strengthen farm-gate purchasing and storage, the Budget allocates Rs. 1,000 million to SATOSA for buying produce and establishing storage, including Rs. 250 million to operationalize and upgrade the Dambulla cold store and warehouse.

¶ 03 We recognize farmers’ hardships. If they cannot sell their harvest now, they face difficulties. We have engaged and are intervening. Contrary to claims that this Budget was crafted away from ground realities, our fertilizer subsidy programme demonstrates otherwise. We increased the per-hectare fertilizer subsidy from Rs. 15,000 to Rs. 25,000, with Rs. 36,900 million allocated for chemical and organic fertilizer subsidies, and Rs. 1,243 million for a time-bound fertilizer credit scheme. We also allocate Rs. 5,550 million to operationalize a farmers’ pension scheme—because farmers feed our 22 million people and must be protected.

¶ 04 To rice farmers, we allocated Rs. 6,000 million last year and purchased around 50,000 MT of paddy. For 2026, Rs. 10,000 million will maintain strategic buffer stocks. We will further strengthen the Paddy Marketing Board’s purchasing mechanism.

¶ 05 To nurture youth agripreneurs in agriculture and agro-industry, Rs. 750 million is allocated—bringing new technologies and entrepreneurship where they were long absent. For crop insurance, the Government will contribute Rs. 3,000 million, recognizing climate risks borne by farmers. For food security, the Agriculture, Livestock, Lands and Irrigation Ministry has Rs. 300 million, alongside the Trade and Food Security Ministry, and Rs. 200 million for additional crop cultivation programmes. The fertilizer support scheme’s time-bound credit gets Rs. 5,427 million.

¶ 06 Irrigation is fundamental: the allocation rises from Rs. 78,000 million in 2025 to Rs. 91,700 million in 2026—an increase of Rs. 13,700 million—for modernizing major irrigation systems so farmers are not struggling for water. For paddy drying machinery, Rs. 500 million is allocated.

¶ 07 On dairy, Rs. 1,000 million supports the Dairy Hub for livestock sector revival, and Rs. 1,000 million for NLDB to develop selected breeding farms. The long-delayed MILCO Badalgama factory—started in 2015 with Rs. 1,800 million spent—will be completed with Rs. 3,000 million, and thereafter the main Narahenpita plant functions will be moved to Badalgama.

¶ 08 Across agriculture, livestock, and rural communities, the relevant ministries and agencies are working together. By next year, we will establish a fair purchasing mechanism so farmers receive just prices for their produce. Thank you.