Cabinet Approves Rs. 331 Mn Compensation for Uma Oya-Affected Families 📈

The Cabinet of Ministers has approved a significant policy shift to provide direct financial compensation to farming families impacted by the Uma Oya Multipurpose Development Project, moving away from previous failed resettlement attempts. • Overall Figures: Approximately Rs. 1.2 million will be awarded to each of the 276 families identified as affected. This represents a total payout of roughly Rs. 331.2 million. • Context of Shift: The decision replaces a 2012 plan to provide alternative agricultural land in Hali-Ela, Walimada, and Uva Paranagama. That plan was deemed unfeasible due to land encroachments, dense forest cover, and wildlife threats. • Economic Impact: The move aims to resolve long-standing issues in the agriculture sector where farmers lost cultivable lands. By providing cash instead of remote land, the government seeks to mitigate the displacement's social and economic strain. • Status: Approved based on recommendations from a dedicated Cabinet Sub-Committee to address the project’s environmental and social challenges.