Sri Lanka, Sept. 16 -- The Cabinet has approved a proposal to compensate sugarcane farmers who lost their crops due to arson at the Sevanagala sugar factory.

The fires, which took place on multiple dates in August and September of 2025, are estimated to have destroyed approximately 19,000 metric tons of sugarcane belonging to around 235 farmers.

The factory ceased milling burnt sugarcane on August 30, causing significant hardship to the farmers who lost their crops.

To address the situation, the government will provide compensation of Rs. 7,000 for each metric ton of destroyed sugarcane.

A committee consisting of officials from the Sugarcane Research Institute and Lanka Sugar (Pvt) Ltd will be appointed to verify the exact extent of t...