SDB bank partners SARP to strengthen rural agribusiness

SDB Bank Executive Director/Chief Executive Officer Kapila Ariyaratne (fourth from left) with Ministry of Agriculture, Livestock, Land and Irrigation Additional Secretary (Development) Lathisha P. Liyanage. From left: SDB Bank Manager – Value Chain Finance and Agri Entrepreneur Development Kanchana C. Hirimuthugoda, SDB Bank Chief Business Officer Chitral De Silva, SDB Bank Deputy Chief Executive Officer Manoj Akmeemana, SARP Rural Finance Specialist Anura Dissanayaka, YED Specialist Niroshana Karunarathna, SIID Specialist Lasantha Gunarathna, Finance Manager R.H.S.P. Ranasinghe, and NRM & ES Specialist Ajith Ethugala 

SDB bank has entered into a strategic partnership with the Smallholder Agribusiness and Resilience Project (SARP) through the signing of a Memorandum of Understanding (MoU), reinforcing its commitment to sustainable agricultural development and financial inclusion in Sri Lanka.

SARP is a six-year initiative (2022–2027) jointly funded by the International Fund for Agricultural Development (IFAD), the Government of Sri Lanka, and other stakeholders, with a total project cost of approximately $ 82 million. The project focuses on strengthening the resilience and market participation of rural households in climate-vulnerable districts including Anuradhapura, Puttalam, Kurunegala, Matale, Vavuniya, and Mannar, covering the Malwathu Oya, Mee Oya, and Deduru Oya river basins.

Under IFAD financing guidelines, up to 45% of the project cost may be provided as a grant, with beneficiaries contributing the remaining 55% as equity. Recognising that many smallholder agribusinesses may face financial constraints in meeting this requirement, SDB bank will extend affordable credit facilities to eligible beneficiaries to bridge this funding gap. This collaboration is expected to enable rural entrepreneurs to fulfill their equity contributions and successfully implement sustainable agribusiness ventures.

The initiative will be delivered through SDB bank’s SME and Cooperative segments, applying the Bank’s established product features and standard credit underwriting criteria. The financial gap of approved proposals will be funded through the Bank’s own resources and available credit lines, ensuring structured and responsible lending practices.

SDB bank Executive Director/CEO Kapila Ariyaratne said: “As a bank that has significant focus on strengthening the national development with a strong and clearly defined agricultural strategy, this partnership with SARP strengthens our commitment to supporting the farming community. By providing affordable financing solutions alongside non-financial support, we aim to ensure sustainable growth within the agriculture sector while enhancing resilience in climate-vulnerable regions.”

SARP Rural Finance Specialist Anura Dissanayaka said: “Collaborating with a Bank that has a distinguished strategy on Agriculture financing, SDB bank, enables us to strengthen access to finance for smallholder agribusinesses, ensuring that eligible beneficiaries are able to meet their equity requirements and participate meaningfully in value chains. This partnership plays a critical role in building long-term resilience and inclusive economic growth.”

Through this strategic collaboration, SDB bank continues to expand its outreach to untapped agriculture driven market segments, reinforcing its role in promoting rural entrepreneurship, strengthening financial inclusion, and supporting the sustainable development of Sri Lanka’s agriculture sector.