SDB bank-Smallholder Agribusiness and Resilience Project to strengthen rural agribiz

From left: SDB bank Manager Value Chain Finance and Agri Entrepreneur Development Kanchana C. Hirimuthugoda, Chief Business Officer Chitral De Silva, Deputy Chief Executive Officer Manoj Akmeemana, Executive Director and Chief Executive Officer Kapila Ariyaratne, Agriculture, Livestock, Land and Irrigation Ministry Additional Secretary Development MOLL&I Lathisha P. Liyanage, 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.

The SARP is a six-year initiative (2022–2027) jointly funded by the International Fund for Agricultural Development (IFAD), government of Sri Lanka and other stakeholders, with a total project cost of approximately US $ 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 the IFAD financing guidelines, up to 45 percent of the project cost may be provided as a grant, with the beneficiaries contributing the remaining 55 percent 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 fulfil 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.

The MoU was signed at the Agriculture, Livestock, Lands and Irrigation Ministry in Battaramulla. 

On behalf of the SARP, the agreement was signed by Agriculture Ministry Secretary D.P. Wickramasinghe, while SDB bank was represented by its Executive Director and Chief Executive Officer Kapila Ariyaratne. Also present at the occasion were Agriculture, Livestock, Lands and Irrigation Ministry Additional Secretary Development Lathisha P. Liyanage and senior representatives from both institutions including Deputy Chief Executive Officer Manoj Akmeemana, Chief Business Officer Chitral De Silva and SDB bank Value Chain Finance and Agri Entrepreneur Development Manager Kanchana C. Hirimuthugoda alongside Rural Finance Specialist Anura Dissanayaka and other key officials from the SARP.