The Cabinet has granted approval to provide compensation to sugarcane farmers whose crops were damaged due to fires that broke out in the sugarcane plantations of the Sevanagala Sugar Factory.

Accordingly, a committee comprising officials from the Sugarcane Research Institute and the Lanka Sugar (Pvt) Ltd in Sevanagala has been appointed to collect accurate data on the extent of sugarcane destroyed and the farmers affected. Based on this data, compensation of Rs. 7,000 per metric ton of sugarcane destroyed by the fires will be granted to the affected farmers.

The decision has been made following a joint proposal submitted by the President, in his capacity as the Minister of Finance, Economic Stabilization and National Policies, and the Minister of Industries and Entrepreneurship Development.

It has been reported that unknown individuals deliberately set fire to sugarcane plantations belonging to Sevanagala Sugar Factory (under Sevanagala Sugar Industries Pvt. Ltd) on several dates — August 16, 20, 21, 22, 24 and September 4 and 5, 2025.

As a result, an estimated 19,000 metric tons of sugarcane belonging to approximately 235 farmers have been destroyed.

Since fire-damaged sugarcane must be grinded within 24 hours, the purchase and gridding of such cane concluded on August 30, 2025.

Due to this, the affected farmers have faced severe difficulties, prompting the government to focus attention on compensating them for their losses, according to the statement issued by the Department of Government Information.