September 09, Colombo (LNW): A sweeping new development initiative valued at US$100 million is set to uplift the lives of over 380,000 individuals across Sri Lanka, as the government joins hands with the World Bank Group to reshape the country’s rural economy and agri-food sector.
The initiative, titled the Integrated Rurban Development and Climate Resilience Project, aims to bridge the rural-urban divide while building a more sustainable, inclusive, and climate-adapted future for Sri Lanka’s farmers and rural workforce.
At the heart of the project lies a multi-pronged strategy designed to modernise agriculture, stimulate employment, and cushion vulnerable communities against the mounting impacts of climate change. The scheme is expected to provide direct support to approximately 8,000 agri-food producers, enhance irrigation and drainage infrastructure on 71,000 hectares of farmland, and accelerate the adoption of climate-smart farming methods among smallholder producers who account for the vast majority of Sri Lanka’s food supply.
According to government officials, the effort is closely aligned with Sri Lanka’s broader development roadmap, which places strong emphasis on a robust, production-oriented economy. Treasury Secretary Dr Harshana Suriyapperuma remarked that the initiative complements the national vision of sustainable economic transformation, while simultaneously bolstering food security and rural prosperity.
With climate-related risks—such as erratic rainfall, extreme heat, and natural disasters—posing growing threats to agricultural output, the project will introduce targeted interventions aimed at strengthening climate resilience. These include upgrading irrigation networks to enable more efficient water use, promoting access to agricultural insurance, and developing infrastructure that can withstand adverse weather patterns.
In addition to environmental adaptation, the initiative will open new economic opportunities, particularly for women and young people in rural regions. By enhancing agribusiness value chains, improving access to domestic and international markets, and linking producers with financial institutions, the project aims to foster job creation across multiple sectors—from processing and packaging to logistics and retail.
An anticipated US$17 million in private capital is expected to be mobilised through the project by facilitating agribusiness loans, encouraging public-private partnerships, and unlocking new streams of investment for rural enterprises.
Crucially, the initiative also includes investments in modernising agricultural data systems, ensuring food quality standards meet export requirements, and offering digital and financial support to micro, small, and medium-scale agricultural enterprises.
Speaking on behalf of the World Bank, David Sislen, Regional Director for the Maldives, Nepal and Sri Lanka, highlighted the significance of integrated collaboration between the public and private sectors. “This is not just about helping farmers survive the effects of climate change—it’s about enabling them to thrive despite those challenges,” he said.
The project builds on a legacy of more than ten years of World Bank involvement in Sri Lanka’s agricultural development. Earlier programmes saw the formation of over 140 farmer-led cooperatives and businesses, resulting in marked increases in rural incomes and productivity. The International Finance Corporation, the private sector arm of the World Bank Group, has also played a vital role in enhancing key export sectors such as cinnamon and coconut through capacity-building and financial innovation.
