The Daily Mirror quoted the Prime Minister's office as saying that the decision was made during a discussion held here to allocate necessary funds for this purpose to the State Trading Corp under the Indian Loan Assistance Programme.

This is expected to avert a possible rice shortage in the future and to curb the abnormal rise in rice prices.

Sri Lanka is battling a serious economic meltdown that has triggered widespread shortages of all essential goods including food, fuel and medicines.

(With UNI inputs)