More than 380,000 people in Sri Lanka are set to benefit from a new US$100 million partnership between the Government of Sri Lanka and the World Bank Group. The initiative, known as the Integrated “Rurban” Development and Climate Resilience Project, aims to strengthen rural livelihoods, create jobs, and build climate resilience in the country’s agri-food sector. It will directly support 8,000 agri-food producers, improve irrigation and drainage services across 71,000 hectares of land, and help smallholder farmers adopt modern, climate-smart practices to increase harvests and reduce losses. The project also seeks to generate rural jobs, particularly for youth and women, by strengthening agribusiness value chains and expanding access to markets.
According to Dr. Harshana Suriyapperuma, Secretary to the Treasury and the Ministry of Finance, Planning and Economic Development, the project aligns with Sri Lanka’s national vision, “A Thriving Nation – A Beautiful Life”, which prioritizes sustainable economic growth and food security. By enhancing agricultural productivity and stimulating rural development, the World Bank-financed initiative will play a vital role in supporting the country’s long-term goals.
Smallholder farmers, who produce 80% of Sri Lanka’s food, are central to the project. With climate change driving unpredictable rainfall, rising temperatures, and extreme weather, the initiative will focus on upgrading irrigation systems, promoting modern farming technologies, expanding access to crop insurance, and investing in resilient infrastructure to safeguard livelihoods. It will also upgrade agricultural data systems and improve food safety standards to boost competitiveness in global markets and open new export opportunities.
David Sislen, World Bank Division Director for the Maldives, Nepal, and Sri Lanka, highlighted the collaborative approach of the project, emphasizing that by combining climate-smart farming with market access and private finance, it would enable farmers not only to adapt to climate change but also to thrive in spite of it. The initiative aims to attract up to US$17 million in private investment by linking farmers to financial institutions and unlocking opportunities in processing, storage, logistics, and marketing.
This project builds on more than a decade of World Bank Group support for Sri Lanka’s agricultural sector. Previous initiatives resulted in the creation of 141 farmer organizations and farmer-owned businesses, increasing average farmer sales by 44%. The International Finance Corporation (IFC), the private sector arm of the World Bank Group, has also supported key export industries such as cinnamon and coconut by providing technical expertise, financial tools, and digital solutions for small and medium-sized enterprises.
Aligned with Sri Lanka’s development priorities and the World Bank Group’s Country Partnership Framework, the project reflects a joint commitment to building a stronger, more inclusive, and climate-resilient rural economy.
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