The World Bank Sri Lanka project worth $120 million has been launched to strengthen agri-food systems, support 380,000 people, and help farmers adopt climate-smart practices that enhance food security and rural livelihoods.
World Bank Sri Lanka project boosts climate-smart farming, irrigation, jobs, and food security.
Sri Lanka and the World Bank have officially launched a $120 million initiative aimed at transforming agriculture and building resilience to climate change. The World Bank Sri Lanka project will directly support 8,000 agri-food producers while benefiting more than 380,000 people nationwide through investments in irrigation, crop insurance, and food safety.
The International Development Association (IDA) of the World Bank Group is financing $100 million of the project, while the Sri Lankan Government is contributing $3 million and private investors another $17 million. The financing agreement was signed on 8 September 2025 by Treasury Secretary Dr. Harshana Suriyapperuma and World Bank Country Director David Sislen. According to the Finance Ministry, private partnerships will play a key role by linking smallholder farmers with buyers and financial institutions, creating opportunities in processing, logistics, and marketing.
Officials said the project supports the government’s policy framework “A Thriving Nation – A Beautiful Life,” which emphasizes sustainable growth through a robust production economy. Dr. Suriyapperuma noted that the World Bank Sri Lanka project will raise agricultural productivity, strengthen rural development, and safeguard food security.
The initiative will be implemented by the Agriculture, Livestock, Land and Irrigation Ministry alongside several national departments and provincial councils. Plans include upgrading irrigation and drainage on 71,000 hectares, improving access to crop insurance, and promoting climate-smart farming methods to reduce losses and increase yields. The World Bank highlighted that investments in resilient infrastructure will help farmers better withstand droughts, floods, and other climate-related risks.
World Bank Country Director David Sislen said the program reflects collaboration between government, farmers, and the private sector. “By combining climate-smart farming with access to markets and private finance, we are not just helping farmers adapt to climate change; we are helping them succeed in spite of it,” he remarked.
The World Bank Sri Lanka project will also modernize agriculture data systems, raise food safety standards, and expand access to export markets. The initiative builds on more than a decade of World Bank support for Sri Lanka’s agricultural sector, which has included creating farmer organizations and boosting smallholder sales by over 40 percent.