It is projected that climate change will affect rainfall patterns in South Asia and will contribute to a decline in water availability for rice cultivation in the region. In Sri Lanka, where rice is both the staple food and the primary crop grown by farmers, reductions in water availability for rice cultivation has serious impacts on farmers’ welfare and national food security. The Overarching Agricultural Policy in Sri Lanka recognizes the importance of adapting and building resilience to climate change in order to achieve national development and food security objectives. A key policy thrust of the agricultural policy framework is to address emerging climate change impacts by supporting the adoption of suitable agricultural strategies and practices by farmers. Understanding how potential climate adaptation practices affect farm systems and farmers’ welfare is an important first step in translating this policy objective into effective actions.