Sri Lanka has launched a major agricultural transformation programme backed by $665 million in planned investment from the World Bank Group and the International Fund for Agricultural Development (IFAD), with the aim of improving market access for 900,000 farmers by 2030.
The Sri Lanka AgriConnect Joint Implementation Plan will coordinate public and private investment across agricultural infrastructure, rural development, climate resilience and food supply chains.
The initiative will be supported by $550 million in World Bank Group investments and $115 million from IFAD, with plans to mobilise up to an additional $170 million in private capital over the next five years.
Developed in partnership with the Government of Sri Lanka, the programme forms part of the country’s Public Investment Programme 2026–2030 and aims to strengthen food security, create employment and increase agricultural productivity.
Sri Lanka is the first country in South Asia to formally join AgriConnect, a World Bank Group initiative focused on improving agricultural value chains and expanding investment in food systems.
Infrastructure investment to strengthen agricultural supply chains
The programme will support investment in agricultural infrastructure and services designed to improve connections between producers, processors and markets.
Priority areas include climate-resilient irrigation, cold-chain infrastructure, transport connectivity, digital agriculture and agricultural technology.
These investments are intended to address constraints affecting agricultural productivity, market access and the movement of goods through supply chains.
The programme will also support access to finance, research and skills development, helping farmers and agribusinesses adopt new technologies and improve commercial performance.
Agriculture and food processing account for at least 15% of Sri Lanka’s gross domestic product, 30% of goods exports and approximately one-third of employment.
The initiative therefore targets a sector with significant implications for national economic development and rural livelihoods.
Prime Minister Dr Harini Amarasuriya said the programme would support the transition towards higher-value agricultural production.
“The AgriConnect Joint Implementation Plan will directly catalyze Government action under our Public Investment Programme, helping us connect farmers to finance, technology and markets while creating better jobs, attracting private investment and expanding opportunities across rural Sri Lanka,” she said.
Coordinated delivery across government and development partners
AgriConnect will bring together the Government of Sri Lanka, the World Bank Group, IFAD, financial institutions, agribusinesses and farmers under a joint implementation framework.
The programme is intended to improve coordination between public investment, private financing and agricultural development activities.
Its implementation will involve multiple areas of delivery, including infrastructure development, financing arrangements, regulatory reforms and support for commercial partnerships.
The initiative will also seek to address policy barriers and financing constraints that have limited investment in agricultural value chains.
For programme delivery, this will require coordination across government institutions, development finance organisations and private-sector participants, with activities aligned to the country’s 2030 development objectives.
Sarvesh Suri, IFC Regional Vice President for Asia and the Pacific, said connecting agricultural businesses with financing and markets would be central to the initiative.
“By aligning public and private investment – from innovative financing to risk-sharing solutions – AgriConnect can unlock capital, strengthen agribusinesses and create more and better jobs,” he said.
Investment to target high-value agricultural sectors
The programme will focus on agricultural industries with potential for greater value addition, commercial development and exports.
Priority sectors include coconut, cinnamon, tea and fisheries, alongside dairy, poultry, aquaculture and horticulture.
Investment will support improvements across production, processing, storage and market access.
The initiative will also target economically disadvantaged regions, including Sri Lanka’s Northern and Eastern Provinces, where expanding agricultural investment is intended to create additional employment and business opportunities.
By strengthening links between farmers and agribusinesses, the programme aims to improve access to higher-value markets and encourage investment in agricultural processing and supporting infrastructure.
Implementation underway through existing development project
Implementation of AgriConnect has already begun through the Integrated Rurban Development and Climate Resilience Project (IRDCRP), financed by the World Bank’s International Development Association.
The project supports commercially viable businesses led by smallholder farmers, helping them access financing and develop partnerships with buyers and other market participants.
These activities are intended to strengthen rural enterprises and improve the commercial opportunities available to agricultural producers.
IFC, the World Bank Group’s private-sector development institution, is supporting complementary activities focused on improving the competitiveness and export potential of Sri Lanka’s cinnamon and coconut industries.
Its involvement also includes expanding financing for agribusinesses through direct investment and financial-sector risk-sharing arrangements.
Donal Brown, IFAD Associate Vice-President for the Department of Country Operations, said the initiative would build on existing rural development activities.
“Through AgriConnect, we can maintain this momentum and bring together the scale, financing and expertise of all partners to invest in the first mile of food systems,” he said.
Programme targets agricultural transformation by 2030
The AgriConnect Joint Implementation Plan establishes a five-year investment and delivery framework aligned with Sri Lanka’s national development priorities.
Its principal target is to improve access to agricultural value chains for 900,000 farmers by 2030, supported by coordinated investment in infrastructure, technology, financing and market development.
While the overall investment commitments and priority sectors have been identified, detailed schedules and budgets for individual infrastructure projects have not been specified in the announcement.
The programme will build on existing development projects while seeking to attract additional private capital into agricultural businesses and supporting infrastructure.
With up to $835 million in development finance and potential private investment identified, AgriConnect represents a significant coordinated programme aimed at strengthening Sri Lanka’s agricultural economy, improving rural infrastructure and expanding employment opportunities.
