Sri Lanka,WB launch US$ 100mn initiative to boost agri-food sector

Sri Lanka and the World Bank Group on Monday announced a US$ 100 million partnership to strengthen rural livelihoods, increase agricultural productivity, and build climate resilience in the country’s agri-food sector, the Treasury said.

The Integrated Rurban (Rural and Urban) Development and Climate Resilience Project will directly support 8,000 agri-food producers, improve irrigation and drainage on 71,000 hectares, and promote climate-smart farming practices aimed at boosting yields and reducing losses. The initiative is also expected to create new jobs in rural areas, with a focus on women and youth, by strengthening agribusiness value chains and expanding market access. “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,” said Treasury Secretary Dr. Harshana Suriyapperuma.

“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.”

Smallholder farmers, who produce 80 percent of Sri Lanka’s food, will be at the center of the project. It aims to help them manage water more effectively, adopt modern technologies, access crop insurance, and invest in climate-resilient infrastructure to cope with increasing climate-related risks such as floods and droughts.

“This project is about people, government, and the private sector working together to make real improvements on the ground,” said David Sislen, World Bank Division Director for the Maldives, Nepal and Sri Lanka. “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 project also aims to attract up to US$ 17 million in private investment by linking farmers to financial institutions, unlocking loans for agribusinesses, and generating income opportunities in processing, storage, logistics, and marketing.