The Government of Sri Lanka has arranged to borrow USD 100 million from the International Development Association (IDA) of the World Bank Group to finance the implementation of the Integrated Rurban Development and Climate Resilience Project (IRDCRP).
The relevant Financing Agreement for the IRDCRP, amounting to USD 100 million, was signed on September 8, 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, on behalf of the Government of Sri Lanka and the IDA, respectively.
Agriculture remains deeply intertwined with daily life of Sri Lankans, having engaged over 25% of the labor force in the sector.
The sector presently accounts nearly 7% of the GDP with a contribution of approximately 22% to the annual foreign exchange earnings.
The new government of Sri Lanka has given the highest priority to the agriculture sector to boost economic opportunities for a larger portion of the population, improve food security, and enhance productivity, competitiveness, and resilience.
In line with this priority, the objectives of the Integrated Rurban Development and Climate Resilience Project (IRDCRP) are to increase the productivity, market access, and climate resilience of agri-food producers in selected areas.
The total project cost is USD 120 million, of which USD 100 million will be financed by the World Bank, and USD 3 million will come from domestic funds.
Additionally, an investment of USD 17 million is expected as beneficiary contribution.
This component will establish productive partnerships between smallholder producers, one or more buyers, and the public sector, focusing on improving market linkages.
The project will be implemented by the Ministry of Agriculture, Livestock, Land and Irrigation, in collaboration with other agencies such as the Department of Agrarian Development, the Irrigation Department, the Department of Agriculture, and relevant Provincial Councils.
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