More than 380,000 people across Sri Lanka are set to benefit from a new US$100 million partnership between the Government of Sri Lanka and the World Bank Group aimed at strengthening rural livelihoods, creating jobs, and building climate resilience in the agri-food sector.
The initiative, called the Integrated “Rurban” (Rural and Urban) Development and Climate Resilience Project, will directly support 8,000 agri-food producers, improve irrigation and drainage services on 71,000 hectares of land, and help smallholder farmers adopt modern, climate-smart agricultural practices to increase harvests and reduce losses. It also aims to create new jobs in rural areas—particularly for youth and women—by strengthening agribusiness value chains and expanding market access.
Dr. Harshana Suriyapperuma, Secretary to the Treasury and the Ministry of Finance, Planning and Economic Development, said: “The National Policy Framework, ‘A Thriving Nation – A Beautiful Life’, prioritizes sustainable economic growth through a robust production economy. This World Bank-financed project will complement the government’s vision by enhancing agricultural productivity, stimulating rural development, and safeguarding food security.”
Smallholder farmers, who produce 80% of Sri Lanka’s food, are central to this project. As climate change brings unpredictable rainfall, rising temperatures, and extreme weather events like floods and droughts, the project will focus on upgrading irrigation systems, promoting modern technologies to boost yields and reduce losses, expanding access to crop insurance, and investing in climate-resilient infrastructure.
The project will also improve agriculture data systems and food safety standards to help farmers compete in global markets and unlock export opportunities.
David Sislen, World Bank Division Director for the Maldives, Nepal, and Sri Lanka, said: “This project is about people, government, and the private sector working together to make real improvements on the ground. By combining climate-smart farming with access to markets and private finance, we are helping farmers not just adapt to climate change—but succeed despite it.”
The initiative is expected to attract up to US$17 million in private investment by linking farmers to financial institutions, unlocking loans for agribusinesses, and creating new income opportunities in processing, storage, logistics, and marketing.
Building on over a decade of World Bank support to Sri Lanka’s agriculture sector, past projects have created 141 farmer organizations and farmer-owned businesses, boosting average farmer sales by 44%. The International Finance Corporation (IFC), the World Bank Group’s private sector arm, has supported key export industries like cinnamon and coconut through technical expertise, financial tools, and digital support for small and medium-sized enterprises.
Aligned with Sri Lanka’s national development goals and the World Bank Group’s Country Partnership Framework, the project reflects a shared commitment to building a stronger, more inclusive, and climate-resilient rural economy.
