USD 100M World Bank Loan for Climate-Resilient Agriculture

COLOMBO (News 1st); The Government of Sri Lanka has finalized a financing agreement with the International Development Association (IDA) of the World Bank Group to borrow USD 100 million for the implementation of the Integrated Rurban Development and Climate Resilience Project (IRDCRP).

The agreement was signed on September 8, 2025 by Dr. Harshana Suriyapperuma, Secretary to the Treasury, and David N. Sislen, Country Director for Maldives, Nepal, and Sri Lanka of the World Bank Group, representing the Government of Sri Lanka and the IDA respectively.

Agriculture remains a vital part of Sri Lankan life, engaging over 25% of the labor force, contributing nearly 7% to the GDP, and accounting for approximately 22% of annual foreign exchange earnings.

Recognizing its importance, the new government has prioritized agriculture to expand economic opportunities, improve food security, and enhance productivity, competitiveness, and climate resilience.

Aligned with this vision, the IRDCRP aims to increase productivity, market access, and climate resilience of agri-food producers in selected regions. 

The total project cost is USD 120 million, with USD 100 million funded by the World Bank, USD 3 million from domestic sources, and an additional USD 17 million expected as beneficiary contributions.

A key component of the project will be the establishment of productive partnerships between smallholder producers, buyers, and the public sector, focusing on strengthening market linkages.

The project will be implemented by the Ministry of Agriculture, Livestock, Land and Irrigation, in collaboration with the Department of Agrarian Development, Irrigation Department, Department of Agriculture, and relevant Provincial Councils.