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#BusinessOctober 2, 2026 · 2 min read

Rubber Development Department Disburses Rs. 140 Million in Replanting Subsidies for Kalutara Smallholders

The Rubber Development Department in partnership with regional plantation banks initiated the direct disbursement of Rs. 140 million in targeted replanting subsidies to smallholder rubber cultivators across Kalutara today, October 2, 2026.

As Sri Lanka's historical heartland of natural rubber production, Kalutara accounts for thousands of family-owned rubber holdings that supply latex to the nation's premier tire and medical glove export industries. Under the newly disbursed state support scheme, over 1,800 registered smallholders in Horana, Agalawatta, and Matugama received installment grants of up to Rs. 450,000 per hectare to uproot senile, low-yielding rubber trees and prepare land for certified young saplings.

Alongside direct financial transfers, the Rubber Research Institute of Sri Lanka (RRISL) distributed disease-resistant, high-yielding budded rubber clones from the 'RRISL 2000' series. These cultivars are scientifically bred for early maturation, rapid bark renewal, and natural resistance to circular leaf spot and Phytophthora fungal infections that traditionally afflict rubber holdings during monsoonal dampness. Tapping yield projections indicate that the new clones can produce upwards of 1,800 kilograms of dry rubber per hectare annually, nearly double the yield of aging 30-year-old stands.

Rubber Development Director General Priyantha Rathnayake remarked that investing in smallholder replanting directly secures the domestic raw material supply chain for multi-billion-rupee solid tire and surgical glove export manufacturers in Colombo and Katunayake. The department will conduct free field demonstrations on rainguard polythene fixing and low-intensity micro-tapping techniques, allowing smallholders to continue latex extraction even during rainy days.

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