Wednesday Sep 10, 2025
Wednesday Sep 10, 2025
Wednesday, 10 September 2025 05:54 - - {{hitsCtrl.values.hits}}
The World Bank yesterday said it was granting a $ 100 million loan for Sri Lanka’s $ 120 million Integrated “Rurban” (Rural and Urban) Development and Climate Resilience Project, which will directly support 8,000 agri-food producers.
More than 380,000 people across Sri Lanka are expected to benefit from the project, which aims to strengthen rural livelihoods, create jobs, and build climate resilience in the agri-food sector.
The agriculture sector employs over 25% of the labour force, contributes nearly 7% of GDP, and generates about 22% of foreign exchange earnings.
The $ 100 million financing comes from the International Development Association (IDA) of the World Bank Group, under an agreement signed on 8 September 2025 by Treasury Secretary Dr. Harshana Suriyapperuma on behalf of the Government of Sri Lanka, and World Bank Country Director for Maldives, Nepal and Sri Lanka David Sislen on behalf of the IDA.
According to the Finance Ministry, the total project cost is $ 120 million, with $ 100 million financed by the World Bank, $ 3 million from domestic funds, and $ 17 million in private investment through productive partnerships linking smallholder farmers with buyers and financial institutions, creating opportunities in processing, storage, logistics, and marketing.
Dr. Suriyapperuma said: “The National Policy Framework of the Government, ‘A Thriving Nation – A Beautiful Life’ has given utmost priority in attaining sustainable economic growth and development through a robust production economy.”
“This project financed by the World Bank, one of Sri Lanka’s prominent development partners, will complement the Government’s vision through enhancing agricultural productivity, stimulating rural development, and contribute towards safeguarding food security,” he added.
The project will be implemented by the Agriculture, Livestock, Land and Irrigation Ministry in collaboration with the Department of Agrarian Development, the Irrigation Department, the Department of Agriculture, and Provincial Councils.
The initiative will improve irrigation and drainage services on 71,000 hectares of land and help smallholder farmers adopt climate-smart practices that increase harvests and reduce losses.
It will promote modern technologies, expand access to crop insurance, and invest in climate-resilient infrastructure to help farmers cope with floods, droughts, and other climate-related challenges.
Sislen said: “This project is about people, government, and the private sector working together to make real improvements on the ground. By combining climate-smart farming with access to markets and private finance, we are not just helping farmers adapt to climate change: We’re helping them succeed in spite of it.”
The World Bank noted that the project will also upgrade agriculture data systems, improve food safety standards, and expand access to export markets. It builds on over a decade of World Bank support to Sri Lanka’s agriculture sector, which has included creating 141 farmer organisations and farmer-owned businesses, boosting average farmer sales by 44%.
