Strengthening risk management and institutional linkages for climate-resilient agriculture in Horowpothana

SLYCAN Trust
August 7, 2025

Local-level institutional support plays a vital role in strengthening food security and building climate-resilient agricultural systems. Reflecting this, ClimaComms recently hosted a Climate 2.0 session at the Horowpathana Divisional Secretariat, bringing together representatives from key stakeholder groups, including Grama Niladari officers, Development Officers, agriculture advisory bodies, and farmer collectives. The session focused on enhancing coordination for climate-resilient agriculture. It facilitated informal knowledge exchange, integrating farmer input and climate information into planning processes, identifying opportunities for cross-sector collaboration, and contributing to the development of inclusive policies that support responsive food systems.

Insurance access in practice: Options and affordability

In Horowpathana, paddy and corn are the primary crops cultivated. Paddy is grown during both the Yala and Maha seasons, while corn is mainly produced as a cash crop—primarily in the Maha season—with the majority used for poultry feed. Field crops serve as alternative or supplementary income sources based on seasonal conditions and market access.

To manage risk and reduce financial vulnerability, farmers in the area rely on two main insurance schemes offered by the Agriculture and Agrarian Insurance Board (AAIB):

  1. Compulsory Crop Insurance Scheme: This scheme is mandatory for farmers registered under the government’s fertiliser subsidy programme and covers six key crops: paddy, maize, chilli, potato, onion, and soya. It protects against climate-related risks such as droughts and floods, as well as damage caused by wild elephants, other animals, pests, diseases, and fire. The premium is fully subsidised by the government, requiring no contribution from farmers.

  2. Voluntary Insurance Schemes: These optional schemes offer additional coverage beyond basic crop protection. Farmers can insure crops, livestock, farming equipment, storage facilities, and personal health. As demand-driven instruments, they allow for flexible, targeted coverage and contribute to resilience across multiple risk areas.

Farmers who obtain agricultural loans from financial institutions are required to insure their crops under an AAIB-managed scheme. In such cases, both loan repayments and premium costs fall on the farmer. Many farmers report that the LKR 40,000 per acre coverage under the compulsory scheme is insufficient given rising input costs, while premiums for voluntary schemes remain largely unaffordable—limiting uptake and coverage across the sector.

Strengthening farmer engagement and institutional linkages

Farmers in Horowpathana benefit from a broad institutional framework that supports agricultural activities and facilitates access to services. However, the effectiveness of this support system and the consistency of two-way communication between farmers and institutions vary. Field officers serve as key intermediaries, with farmers often seeking assistance for reporting crop damage or for the renovation of wells and irrigation tanks. Despite the availability of modern irrigation technologies, many farmers continue to rely on traditional methods, underscoring the need for more accessible and effective extension and advisory services.

Seasonal cropping decisions are typically made by farmers themselves, drawing on rainfall patterns and local knowledge during community discussions (waga kanna resweem). While officers provide recommendations, their influence on final decisions is limited. Weather forecasts are commonly shared via WhatsApp groups and are reported to be about 90% accurate—but they lack village-level specificity, reducing their practical value for location-based decision-making.

Preparedness and early action also remain limited. For instance, when risks to tank bunds or other structural issues arise, farmers report them to authorities but tend to wait for a response rather than taking early preventive action. Similar patterns are observed during droughts, where the primary response is to delay cultivation and rely on government relief measures.

Financial access plays a critical role in shaping institutional engagement. Most farmers do not access formal credit systems, instead relying on middlemen who supply agricultural inputs and recover costs through a share of the harvest. This informal practice reduces opportunities for structured engagement with financial institutions and government support schemes. However, a small but growing number of farmers engage actively with formal systems, adopting more systematic and resilient financial strategies for their agricultural activities.

Way forward

The session highlighted the importance of strengthening two-way communication between farmers and institutions, improving the affordability and reach of insurance products, and promoting timely, anticipatory action at the community level. Building a climate-resilient agricultural system requires not only technical and financial solutions, but also responsive institutions, inclusive planning processes, and the empowerment of farmers as key agents of change. 

SLYCAN Trust has been working in this space through our EthicalX: Climate & Innovation Hub, which supports efforts to build resilient and sustainable food systems. Our previous report, Strengthening Sri Lanka’s Ecosystem for Climate and Disaster Risk Management and Finance, provides detailed analysis on institutional responsiveness, risk transfer mechanisms, and community-level engagement. Building on this work, an in-depth review is currently underway to further examine the enabling conditions required to enhance risk management, support anticipatory action, and improve coordination between key actors in the agricultural sector in the area.

The ClimaComms programme established by SLYCAN Trust aims to advance evidence-based and innovative forms of climate communications and empower climate communicators. Through capacity-building on technical aspects related to climate change and providing spaces for enhancing and scaling up climate literacy and communication processes, ClimaComms engages communicators and media professionals from across the world to build climate awareness, raise climate literacy, and contribute to scaling up evidence- and science-driven climate action at all levels.

SLYCAN Trust

SLYCAN Trust is a non-profit think tank. It has been a registered legal entity in the form of a trust since 2016, and a guarantee limited company since 2019. The entities focus on the thematic areas of climate change, adaptation and resilience, sustainable development, environmental conservation and restoration, social justice, and animal welfare. SLYCAN Trust’s activities include legal and policy research, education and awareness creation, capacity building and training, and implementation of ground level action. SLYCAN Trust aims to facilitate and contribute to multi-stakeholder driven, inclusive and participatory actions for a sustainable and resilient future for all.

Local-level institutional support plays a vital role in strengthening food security and building climate-resilient agricultural systems. Reflecting this, ClimaComms recently hosted a Climate 2.0 session at the Horowpathana Divisional Secretariat, bringing together representatives from key stakeholder groups, including Grama Niladari officers, Development Officers, agriculture advisory bodies, and farmer collectives. The session focused on enhancing coordination for climate-resilient agriculture. It facilitated informal knowledge exchange, integrating farmer input and climate information into planning processes, identifying opportunities for cross-sector collaboration, and contributing to the development of inclusive policies that support responsive food systems.

Insurance access in practice: Options and affordability

In Horowpathana, paddy and corn are the primary crops cultivated. Paddy is grown during both the Yala and Maha seasons, while corn is mainly produced as a cash crop—primarily in the Maha season—with the majority used for poultry feed. Field crops serve as alternative or supplementary income sources based on seasonal conditions and market access.

To manage risk and reduce financial vulnerability, farmers in the area rely on two main insurance schemes offered by the Agriculture and Agrarian Insurance Board (AAIB):

  1. Compulsory Crop Insurance Scheme: This scheme is mandatory for farmers registered under the government’s fertiliser subsidy programme and covers six key crops: paddy, maize, chilli, potato, onion, and soya. It protects against climate-related risks such as droughts and floods, as well as damage caused by wild elephants, other animals, pests, diseases, and fire. The premium is fully subsidised by the government, requiring no contribution from farmers.

  2. Voluntary Insurance Schemes: These optional schemes offer additional coverage beyond basic crop protection. Farmers can insure crops, livestock, farming equipment, storage facilities, and personal health. As demand-driven instruments, they allow for flexible, targeted coverage and contribute to resilience across multiple risk areas.

Farmers who obtain agricultural loans from financial institutions are required to insure their crops under an AAIB-managed scheme. In such cases, both loan repayments and premium costs fall on the farmer. Many farmers report that the LKR 40,000 per acre coverage under the compulsory scheme is insufficient given rising input costs, while premiums for voluntary schemes remain largely unaffordable—limiting uptake and coverage across the sector.

Strengthening farmer engagement and institutional linkages

Farmers in Horowpathana benefit from a broad institutional framework that supports agricultural activities and facilitates access to services. However, the effectiveness of this support system and the consistency of two-way communication between farmers and institutions vary. Field officers serve as key intermediaries, with farmers often seeking assistance for reporting crop damage or for the renovation of wells and irrigation tanks. Despite the availability of modern irrigation technologies, many farmers continue to rely on traditional methods, underscoring the need for more accessible and effective extension and advisory services.

Seasonal cropping decisions are typically made by farmers themselves, drawing on rainfall patterns and local knowledge during community discussions (waga kanna resweem). While officers provide recommendations, their influence on final decisions is limited. Weather forecasts are commonly shared via WhatsApp groups and are reported to be about 90% accurate—but they lack village-level specificity, reducing their practical value for location-based decision-making.

Preparedness and early action also remain limited. For instance, when risks to tank bunds or other structural issues arise, farmers report them to authorities but tend to wait for a response rather than taking early preventive action. Similar patterns are observed during droughts, where the primary response is to delay cultivation and rely on government relief measures.

Financial access plays a critical role in shaping institutional engagement. Most farmers do not access formal credit systems, instead relying on middlemen who supply agricultural inputs and recover costs through a share of the harvest. This informal practice reduces opportunities for structured engagement with financial institutions and government support schemes. However, a small but growing number of farmers engage actively with formal systems, adopting more systematic and resilient financial strategies for their agricultural activities.

Way forward

The session highlighted the importance of strengthening two-way communication between farmers and institutions, improving the affordability and reach of insurance products, and promoting timely, anticipatory action at the community level. Building a climate-resilient agricultural system requires not only technical and financial solutions, but also responsive institutions, inclusive planning processes, and the empowerment of farmers as key agents of change. 

SLYCAN Trust has been working in this space through our EthicalX: Climate & Innovation Hub, which supports efforts to build resilient and sustainable food systems. Our previous report, Strengthening Sri Lanka’s Ecosystem for Climate and Disaster Risk Management and Finance, provides detailed analysis on institutional responsiveness, risk transfer mechanisms, and community-level engagement. Building on this work, an in-depth review is currently underway to further examine the enabling conditions required to enhance risk management, support anticipatory action, and improve coordination between key actors in the agricultural sector in the area.

The ClimaComms programme established by SLYCAN Trust aims to advance evidence-based and innovative forms of climate communications and empower climate communicators. Through capacity-building on technical aspects related to climate change and providing spaces for enhancing and scaling up climate literacy and communication processes, ClimaComms engages communicators and media professionals from across the world to build climate awareness, raise climate literacy, and contribute to scaling up evidence- and science-driven climate action at all levels.

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