C National Library Of Sri Lanka-Cataloguing-In-Publication .

Copyright C October 2002Institute of Policy Studies, Sri LankaNational Library of Sri Lanka-Cataloguing-In-Publication DataShand, RicIrrigation and Agriculture in Sri Lanka/ Ric Shand.Colombo: Institute of Policy Studies, 2002.- 210p. ; 25 c.m.ISBN 955-8708-11-9Price:i. 631.5875493 DDC 21ii. Title1.Agriculture – Sri Lanka2.Irrigation – Sri LankaISBN 955-8708-11-9PricePlease address orders to:Institute of Policy Studies99 St Michael’s Road, Colombo 3, Sri LankaTel: 94 1 431 368, 431 378 Fax: 94 1 431 395Email: ips@sri.lanka.netThe views expressed in this publication are those of the author and do not necessarily represent those of theInstitute of Policy Studies.

Irrigation and AgricultureinSri LankabyRic ShandThis study was first commissioned under the Public Sector Restructuring Project in Sri Lanka forthe World Bank and the Ministry of Finance and Planning, Government of Sri Lanka, Colombo, 1

List of TablesivList of DiagramsviList of MapsviList of FiguresviSpecial Terms, Acronyms and Ric ShandHistorical BackgroundRic Shand14Irrigation in Public Sector Investment Programmes 1950 to 2000S. Somasunderam and Y.M.W.B. Weerasekera12Benefits and Costs of Past Irrigation InvestmentRic Shand and S.A.B. Ekanayake37Options for Future Investment in IrrigationN. Wickremaratne and Ric Shand61Operation and Maintenance Requirements of Irrigation SystemsN. Wickremaratne and S.A.B. Ekanayake107Benefits and Costs of Rice Based Agricultural DevelopmentS.A.B. Ekanayake116Diversification and the Development of Commercial AgricultureU. Pethiyagoda and Ric Shand139Developments in Irrigation and Agriculture in the 1990sRic Shand168Annex 1185References187i

ForewordSri Lanka has always been predominantly an agricultural economy since ancient times and thehistory of irrigation facilities dates back to over two millennia. Small village tanks with singlechannel systems developed into an advanced irrigation technology such as the device called thevalve pit (Biso Kotuwa) and a large number of irrigation systems helped make Sri Lanka inancient times the “the Granary of the East”.At the time of regaining independence the predominantly agricultural sector consisted of anexport agricultural sector and a subsistence agricultural sector. Governments after independenceattempted to develop the domestic agricultural sector through the development of agriculturalinfrastructure to improve irrigation facilities, apart from institutions for the delivery of credit,inputs and extension services. The major focus of agricultural policy was to achieve selfsufficiency in food, mainly rice and investments were made in the restoration and rehabilitationof existing irrigation schemes and the construction of new schemes. It was also to help inrelieving the growing pressure of the population working on land in the existing dry zone areas.About 75 per cent of the population still live in the rural sector and agriculture, particularly ricefarming is, in Sri Lanka not merely a livelihood but is considered a way of life. In order todevelop this sector it becomes necessary, as there is a seasonal variation in rainfall, to provideirrigation facilities to cultivate land in two seasons at least.The Gal Oya Scheme was the first large multipurpose project to be undertaken followed since1955 by a number of other irrigation schemes culminating in the largest ever multipurposeirrigation project undertaken by the State since independence in the Mahaweli DevelopmentProgramme.The present volume is timely and deals in depth with some important issues and problemsassociated with these irrigation schemes and agriculture. It has been written by a number ofeminent specialists in their respective fields and ably correlated and edited by Ric Shand who hascontributed considerably to the text himself. The study was originally completed in 1990 andhas since been revised and updated to the year 2000. Of special interest is the examination ofsuch issues as the costs and returns of irrigation schemes , the options for investment inirrigation, the adoption of new designs and technologies, the benefits and costs of rice baseddevelopment with particular reference to productivity levels, and theprospects fordiversification and development of commercial agriculture.The arguments are supported by a wealth of statistical data and illustrated by some veryinteresting maps and diagrams. There is no doubt that the information and discussions providedin the book would be of interest and use to policy planners, administrators, experts in irrigationand agriculture as well as to the general public alike.Gamani CoreaChairman, IPSAugust 2002ii

AcknowledgementsThe editor and contributors wish to express their warm thanks to the Institute of Policy Studiesand to its Executive Director, Dr. Saman Kelegama for their generous offer to publish an updatedversion of the 1990 study.As team leader of the original study and as editor of this volume, I would like to express my deepappreciation for the contributions made by the highly talented specialist members of the team.Their team spirit and cooperation made the study an enjoyable experience at a difficult time forSri Lanka. The team was ably and sympathetically coordinated by Mr. Merrick Perera.We extend our warm thanks for the invaluable cooperation of the Cartography Unit in theResearch School of Pacific and Asian Studies, Australian National University and in particular toKay Dancey in the Unit who expertly and patiently prepared all the Maps, Diagrams and Figures.We also thank Christine Gomesz of the IPS who has guided this manuscript through the finalstages of its preparation for publication.Ric ShandEditorAugust 2002iii

List of TablesTable 2.1Classification of Irrigation Works by Type, Size and Features10Table 3.1Investment in Irrigation 1950-198715Table 3.2Investments in Irrigation as Percentages of PIP15Table 3.3Sectoral Allocation in Public Investment Programmes from1979-83 to 1996-200017Table 3.4Mahaweli Allocations in the Public Investment Programme 1980-200021Table 3.5Ongoing and New Investments and Annual Expenditures in theMahaweli, 1979 to 200024Table 3.6Investment in Non-Mahaweli Irrigation Schemes, 1986-199927Table 3.7Breakdown of Expenditures on the Inginimitiya Project29Table 3.8Estimated Costs of the Kirindi Oya Project30Table 3.9Some Performance Indicators of Major and Medium Schemes31Table 3.10Breakdon of Expenditures on the Village Irrigation Rehabilitation Project32Table 3.11Estimated Actual Costs of the Tank Irrigation Modernisation Project33Table 3.12The Gal Oya Left Bank Management Project34Table 3.13Other Performance Indicators of the Gal Oya Left Bank 41Management Project34Table 4.1Indicators of Costs and Benefits for Mahaweli and Rehabilitation Schemes38Table 4.2Cost and Benefit Parameters for Six World Bank-Supported Projects41Table 4.3Appraisal and Project Completion Projections of Cropping Intensitiesand Paddy Yields for the TIMP46Table 4.4Sensitivity Tests on the Projected EIRR of the VIRP49Table 4.5Distribution of the Benefit Cost Ratios within the VIRP52Table 4.6Projected Economic Returns from the Major IrrigationRehabilitation Project (MIRP)53Total Areas under Other Proposed River Basin Development SystemProposals within the North Central Province67Reported Differences brought about by the New Technology atWalagambahuwa80Table 5.3Cropping Patterns Followed by Farmers80Table 6.1Holding Size and Cropping Intensity in Major Schemes110Table 6.2Profitability of Irrigated Paddy111Table 6.3Incidence of Paddy Parcels with Water Problems by Size of Parcel,Maha Season 1986/87113Incidence of Paddy with Water Problems, Yala 1987 or Most RecentlyCultivated Yala113Table 5.1Table 5.2Table 6.4iv

Table 6.5Percentage Distribution of Paddy Parcels with Water Problemsby Type, Maha 1986/87113Percentage Distribution of Paddy Parcels with Water Problemsby Type, most recent Yala114Table 7.1A Comparison of Estimates of Rice Production126Table 7.2Projected Paddy Yields127Table 7.3Average Paddy Yields in System H128Table 7.4Projections of Population, Demand and Supply of Rice, 1991 to 2016130Table 7.5Total Rice Production at Varying Levels of Yield Increase per annumwith Area Expansion as Planned in 1992131Total Rice Production at Varying Levels of Yield Increase per annumwith Area Expansion Planned in 1992, Including System B (RB)and Moragahakanda131Table 7.7Supply of Nutrients and the Sources137Table 7.8Availability, Requirement and the Per Capita Per Day Shortfall ofLocally Produced Food Items138Table 8.1Area Planned by Crops, Uda Walawe Project140Table 8.2Area Cultivated in Uda Walawe Project by Crops, Year and Season,1969/70 to 1979Quantities, Yield and Area Required by Some Traditional Dry ZoneCrops in 1987Table 6.6Table 7.6Table 8.3Table 8.4141148Costs and Returns for Paddy and Some Other Crops UnderIrrigation at Polonnaruwa148Yields and Returns from Crops Grown at Kalawewa, System Hin Yala Season149Table 8.6Areas of Crops Grown in System H in Yala Season, 1977 to 1984150Table 8.7Crop Requirements Based on Nutritional Needs in 1986150Table 8.8Economic Performance of Crops in Yala Season in Well Irrigated Areas153Table 8.9Areas of Gravity Command within the AMDP by Type of Drainage154Table 8.10Crops Identified as having Potential for Mahaweli Areas156Table 9.1Growth Rates and Structure of Real Output, 1986 to 1997168Table 9.2Sri Lanka Trade Policy Protection – Agricultural Crops Relative toManufacturing Industry175Table 8.5v

List of DiagramsPageDiagram 5.1Present and Potential Additional Areas Under theMahaweli Irrigation System63The Mahaweli Development Project and Special AreasAccelerated Mahaweli AreaAccelerated Mahaweli Development Programme61113List of MapsMap 2.1Map 2.2Map 3.1List of FiguresFigure 5.1Figure 5.2Figure 5.3Figure 5.4Figure 5.5Figure 5.6Figure 5.7Figure 5.8Figure 5.9Figure 5.10Figure 5.11Figure 7.1viVillage Tank SystemsSolar Radiation and Rice Grain YieldProfile of a Typical Dry Zone LandscapeMuthukandiya Model – Farm LevelMuthukandiya Model – Village LevelWeli Oya ModelA Two-Tank Version of the Weli Oya ModelTypes of AquifersAreas under Ground Water InvestigationsVanathavillu BasinMurunkan BasinTrends in Paddy Prices and Cost of Production7882848586899092949597120

Special Terms, Acronyms and AbbreviationsADBAsian Development BankACAlternative cropsAMDPAccelerated Mahaweli Development ProgrammeANUGABiennial food fair held in Cologne, Federal Republic of GermanyBDSBaffle Distribution SystemBGsBathalagoda rice varietiesCEMCountry Economic MemorandumCICropping intensityDRCDomestic Resource CostEBCREconomic benefit cost ratiosEDSEnterprise development strategyEIEDEmployment Investment Enterprise StrategyEIRREconomic internal rate of returnEMSExport marketing strategyEPCEffective Protection CoefficientERREconomic rate of returnESCEffective Subsidy CoefficientFCCField canalsGDPGross Domestic ProductGODBGal Oya Development BoardGOSLGovernment of Sri LankaGPSGuaranteed Price SchemeIDAInternational Development AgencyIPSInstitute of Policy StudiesISMPIrrigation Systems Management ProjectLBLeft BankLDDLand Development Departmentvii