By Faridat Salifu
The Government of Sri Lanka and the World Bank have signed a US$100 million partnership to strengthen rural livelihoods, create jobs and build climate resilience in the agri-food sector.
The Integrated “Rurban” Development and Climate Resilience Project will benefit more than 380,000 people across the country.
It will directly support 8,000 agri-food producers, improve irrigation and drainage on 71,000 hectares of land, and help smallholder farmers adopt climate-smart agricultural practices.
The project also seeks to generate jobs for youth and women by strengthening agribusiness value chains and expanding access to markets.
Treasury Secretary Dr. Harshana Suriyapperuma said the project aligns with the government’s National Policy Framework, A Thriving Nation – A Beautiful Life, which prioritises sustainable growth through a robust production economy.
He said the World Bank-funded programme would boost productivity, stimulate rural development and safeguard food security.
Smallholder farmers, who produce 80 percent of Sri Lanka’s food, are a key focus of the initiative.
With climate change increasing risks from droughts, floods and heat, the project will upgrade irrigation systems, promote modern technologies and expand access to crop insurance.
It will also improve climate-resilient infrastructure, upgrade agriculture data systems and strengthen food safety standards to open up global market opportunities.
World Bank Division Director for Maldives, Nepal and Sri Lanka, David Sislen, said the project combines climate-smart farming with access to markets and finance to help farmers succeed despite climate challenges.
The programme is expected to attract up to US$17 million in private investment by linking farmers to banks, unlocking agribusiness loans and creating income opportunities in processing, logistics and storage.
It builds on more than a decade of World Bank support to Sri Lanka’s agriculture sector, which has previously helped create 141 farmer organisations and increased farmer sales by 44 percent.
The International Finance Corporation has also supported export industries such as cinnamon and coconut through finance, technical expertise and digital tools for small and medium-sized enterprises.
Officials said the initiative aligns with Sri Lanka’s national development goals and the World Bank’s Country Partnership Framework, reflecting a shared commitment to a stronger, inclusive and climate-resilient rural economy.
