
Economic Viаbility of Pаddy Cultivаtion in Leаding Pаddy-Producing Regions of Sri Lаnkа
Abstract
Paddy farming plays a vital role in Sri Lanka’s agricultural sector by supporting national food security and rural livelihoods. However, rising input costs, declining yields, and price instability threaten its economic sustainability. This study examined the economic viability of paddy cultivation in the major paddy-growing districts of Anuradhapura, Polonnaruwa, Kurunegala, Hambantota, and Ampara. Primary data were collected through a questionnaire survey, while secondary data were obtained from official reports and publications. A cost–benefit analysis was used to estimate net returns by considering input costs, yields, and paddy prices. The results revealed that the average cost of cultivating one acre ranged between Rs. 65,000 and Rs. 85,000, with fertiliser and labour accounting for the largest share of the cost. Significant yield variations were observed due to climatic factors and pest attacks. Profit margins were generally low, averaging Rs. 10,000–15,000 per acre, with negative returns in some areas. Overall, the findings indicate considerable economic pressure on paddy farming. The study emphasises the need for mechanisation, improved irrigation, and high-yielding seed varieties.
© 2025 S. M. S. Pаlithа Bаndаrа, G. C. Sаmаrаweerа, T. S. L. W. Gunаwаrdаnа, published by Sri Lanka Forum of University Economists
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