Since Independence, investment in irrigation has received high priority in the Public Investment Programme (PIP) in Sri Lanka. The proportion of public investment allocated or irrigation varied from 9 per cent to 40 per cent in the 1950-87 period. Being traditionally a predominantly agricultural economy, it is not surprising that such large allocations were made for investment in irrigation. Irrigation is an input that helps not only in the expansion of area under agriculture, but can also facilitate technological change and therefore help to increase productivity. Also, agro-climatically, Sri Lanka has an unusually favourable environment for exploitation of rainfall and cultivable land through irrigation. This study was originally completed in 1990, and since revisited and updated to year 2000. It examines the public investment in agriculture, giving particular attention to allocation of public investment within the irrigation sub-sector.

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