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Project Development Objectives

To increase productivity, market access, and climate resilience of agri-food producers in selected areas, and to provide effective response to eligible emergencies.

PDO Level Indicators

Agri-food producers adopting improved and climate-resilient agricultural technology or practices supported by the project (8,000). Area provided with improved irrigation or drainage services (75,000 Ha). Agri-food producers with increased marketed value of their produce of at least 15 percent compared to comparison group through Productive Partnerships (8,000). People with enhanced resilience to climate risks (400,000).

Project Background

The project was approved on April 10, 2025, signed on September 08, 2025, and became effective on September 08, 2025.

Strengthening Rural Sri Lanka

The project aims to contribute to alleviating poverty and food insecurity in rural Sri Lanka by addressing unreliable water access, low agricultural productivity, and limited market connectivity, all of which are exacerbated by growing risk of climate change.

Empowering Smallholders

It focuses on improving smallholder farmers' access to value chains, finance, and insurance, and strengthening institutional frameworks.

Project Financing and IDA Investment

Total financing amounts to US$ 120 million, including an IDA concessional credit of US$ 100 million.

The Project’s main beneficiaries are small-scale and medium-scale producers and households engaged in the agri-food, livestock, plantation and fisheries sectors residing in the project areas.

Potential value chain development in food-crops

Potential value chain development in food-crops(agriculture), high value crops (plantation), livestock and fisheries.

High vulnerability to climate change

High vulnerability to climate change, especially in changes to rainfall patterns and increasing frequency of drought throughout the country’s dry zones.

Improved Irrigation & Sustainable Natural Resource Management

The project will benefit approximately 400,000 people through improved irrigation and sustainable natural resource management. It will promote gender inclusion, support 8,000 farmers and entrepreneurs with technical assistance and finance, and strengthen market linkages. Enhanced sector services, data systems, and information will benefit producers, including export-oriented agricultural enterprises.