Sri Lanka, EU ink €8 mn grant to drive green growth in rubber sector

Sri Lanka has secured a €8 million grant from the European Union to accelerate its transition to green economic growth, with a targeted push to modernise and decarbonise segments of the country’s rubber value chain, the Finance Ministry said on Tuesday.

The grant agreement, signed between the Government of Sri Lanka and the EU, will fund the ‘AgriGreen Initiative ‘ – Green Economic Growth through Sustainable Agriculture Practices project, aimed at promoting sustainable production, strengthening food security and improving export-market integration.

The project will be implemented under the leadership of the Ministry of Plantation and Community Infrastructure, in collaboration with the Rubber Development Department and the Rubber Research Institute of Sri Lanka, and in partnership with the EU. 

It will focus on introducing environmentally responsible agricultural practices in selected rubber-sector value chains, with specific emphasis on youth and women participation.

Secretary to the Ministry of Finance, Planning and Economic Development Dr. Harshana Suriyapperuma signed the agreement on behalf of the Sri Lankan government, while Dr. Johann H. Hesse, Head of Cooperation at the EU Delegation to Sri Lanka, represented the European Union.

The agreement underscores EU’s continued support for Sri Lanka’s economic reform and sustainability agenda, at a time when policymakers are seeking to balance growth, environmental stewardship and inclusive development amid fiscal consolidation and structural reforms.

The Finance Ministry said the project marks a key milestone in Sri Lanka–EU cooperation, reinforcing shared commitments to green economic growth, sustainable consumption and production, and long-term food security.