Australia extends Market Development Facility programme to Sri Lanka by five years

Australia extended the Market Development Facility (MDF) programme for Sri Lanka this week, as the two nations entered into a five-year subsidiary arrangement, committing to the ongoing development cooperation in market systems development.

The agreement will focus on economic diversification and generating foreign exchange, while also strengthening livelihoods and women’s economic empowerment.

 The arrangement builds on the previous five years of investment in the Market Development Facility (MDF) programme, with an additional investment of AUD 12.1 million (Rs.2.55 billion).

A sum of AUD 9.45 million (Rs.1.99 billion) was provided in phase one of the programme.
Since 2015, MDF has been a catalyst for economic development, working closely with the private sector and spearheading innovative solutions that support Sri Lanka’s tourism and ​agriculture sectors.

“Through MDF, Australia looks forward to engaging with the private sector to build partnerships which will continue to drive prosperity and inclusivity for a resilient recovery,” Australian High Commissioner to Sri Lanka Paul Stephens said in a statement. 

According to Secretary to the Ministry of Finance Mahinda Siriwardana, the partnership between Australia and Sri Lanka supported economic growth and development, particularly in key sectors of tourism and agriculture.
The programme partners with businesses of all scales to enhance competitiveness, generate foreign exchange, and contribute to Sri Lanka’s economic recovery. In tourism, this includes a focus on sustainable, high-value tourism; in agriculture, MDF focuses on implementing commercially viable business models that improve agricultural productivity and quality, while promoting climate-resilient agriculture and affordable agricultural technology.

Through MDF, Australia is a longstanding champion of Sri Lanka’s emerging specialty coffee sector, collaborating with partners to establish Sri Lanka as a global specialty coffee destination.

The programme is also looking to expand select agricultural value chains such as mango, cashew, mushroom, and peanuts, which hold export potential but also engage significant numbers of smallholder farmers, including women.
 MDF is now looking to expand climate-focused investments to support greater energy efficiency and resilience in the face of environmental shocks, particularly for agribusinesses.