Sri Lanka EU grant cooperation deepened as the country signed an €8 million agreement with the European Union to promote environmentally responsible practices in the rubber sector. The initiative aims to support sustainable growth while empowering youth and women in agriculture.
Sri Lanka EU grant supports green growth in rubber farming
Sri Lanka has strengthened its development partnership with the European Union by signing an €8 million grant agreement aimed at transforming agricultural practices within the rubber sector. The agreement focuses on promoting sustainability, improving value chains, and supporting inclusive economic growth, particularly among youth and women engaged in plantation-based livelihoods.
According to a statement issued by the Ministry of Finance, the grant is designed to support Sri Lanka’s transition toward environmentally responsible and climate-conscious agricultural practices in selected rubber value chains. The initiative reflects a growing emphasis on aligning economic development with environmental protection, at a time when sustainability standards are increasingly shaping global trade and investment flows.
The funding is provided under the “AgriGreen Initiative – Green Economic Growth through Sustainable Agriculture Practices” project, which seeks to modernize agricultural production while minimizing environmental impact. Within the rubber sector, this approach is expected to encourage more efficient land use, improved resource management, and the adoption of practices that reduce ecological stress while maintaining productivity.
Rubber remains a strategically important crop for Sri Lanka, contributing to export earnings, rural employment, and industrial supply chains. However, the sector has faced challenges ranging from fluctuating global prices to climate-related risks and aging plantation infrastructure. By focusing on sustainability and value chain development, the new programme aims to enhance the long-term resilience and competitiveness of Sri Lanka’s rubber industry.
A key feature of the project is its emphasis on social inclusion. Special attention will be given to youth and women, groups that play a vital role in plantation communities but often face limited access to training, finance, and decision-making opportunities. By integrating skills development and inclusive participation into the programme framework, the initiative seeks to create more equitable outcomes alongside environmental gains.
The project will be implemented through a collaborative institutional framework led by the Ministry of Plantation and Community Infrastructure as the lead ministry. It will be supported by the Rubber Development Department and the Rubber Research Institute of Sri Lanka, institutions with technical expertise and sector-specific knowledge. The European Union will partner closely with these agencies to ensure alignment with international best practices and sustainability benchmarks.
Officials note that the initiative is expected to strengthen research-driven approaches to rubber cultivation, including improved planting material, better soil management, and climate-adaptive techniques. Such measures are increasingly important as Sri Lanka’s plantation sectors confront changing weather patterns and heightened environmental expectations from global buyers.
The agreement was formally signed by Secretary to the Ministry of Finance Harshana Suriyapperuma and Head of Cooperation of the Delegation of the European Union to Sri Lanka, Johann H. Hesse. The signing underscores the EU’s continued engagement with Sri Lanka on development cooperation, particularly in areas that combine economic growth with environmental responsibility.
For Sri Lanka, the Sri Lanka EU grant arrangement represents more than financial assistance. It signals international confidence in the country’s efforts to reform and modernize its agricultural sectors while adhering to sustainability principles. The rubber industry, with its export orientation and rural footprint, is well positioned to benefit from such targeted support.
The initiative also aligns with Sri Lanka’s broader policy objectives of promoting green growth and transitioning toward a more sustainable economic model. As global markets increasingly prioritize environmentally responsible production, initiatives such as AgriGreen are expected to help Sri Lankan producers remain competitive while meeting evolving regulatory and consumer standards.
In the medium term, stakeholders anticipate that the programme will contribute to higher value addition, improved livelihoods in plantation regions, and enhanced environmental outcomes. By linking sustainability with economic opportunity, the project aims to deliver measurable benefits across the rubber value chain, reinforcing the sector’s role in Sri Lanka’s development trajectory.
Overall, the agreement highlights the growing importance of partnerships that integrate environmental stewardship, social inclusion, and economic resilience. As implementation moves forward, the success of the programme will be closely watched as a model for sustainable agricultural transformation in Sri Lanka.