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Sri Lanka Secures $100 Million for Eco-Friendly Export Farming with Solar Pumps

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Sri Lanka is set to receive a significant investment of $100 million aimed at modernizing agricultural practices over the next two decades, focusing on sustainable farming and exports, officials have announced.

Under the auspices of President Ranil Wickremesinghe’s office, the Climate Change Office of Sri Lanka, in collaboration with the Climate Vulnerable Forum (CVF) and Nativa Capital of Portugal, finalized the $100 million deal on Tuesday. The project will be centered in Sri Lanka’s North Central district of Anuradhapura, focusing on farming and forest protection initiatives.

As part of the project, each of the 15,000 farming families involved will receive a concessional loan totaling $6,000 throughout the project duration. This funding will support the cultivation of watermelon, red chilies, and tomatoes in the initial phase, alongside the implementation of solar pumps and other energy projects to promote sustainable agriculture.

Nativa Capital, the investment company involved, will also play a role in facilitating market procurement for these crops, with an eye toward future export opportunities and the establishment of factories within Sri Lanka.

Ruwan Wijewardene, the President’s Senior Advisor on Climate Change, emphasized the comprehensive benefits for farming families, stating, “Each family stands to benefit from an investment totaling approximately $6,000, covering not only modern technical equipment but also addressing longstanding market access challenges faced by farmers.”

Efforts have been made to tackle market access issues, with Nativa committing to purchasing produce from the project. The initiative is not limited to Anuradhapura; it will expand to encompass other crops and areas, including the Polonnaruwa district and the Eastern province in the future.

Wijewardene highlighted the broader objectives of the project, stating, “Upon the successful implementation of this pilot project, the government plans to extend modern agricultural technologies to other districts, foreseeing a transformation in the export economy and an enhancement in the quality of life for farmers.”

The project aims to foster economic prosperity while empowering farming communities with innovative technology and sustainable practices, creating employment opportunities, attracting foreign investment, and strengthening Sri Lanka’s agricultural sector.

Execution of the project will be overseen by Our Movement Lanka, a community-based organization, in collaboration with Nativa Capital and the Sri Lankan government. A pilot project involving fifteen families cultivating chili has already commenced, with plans underway for further expansion.”

However, officials have yet to provide projections regarding potential foreign exchange inflows despite repeated requests.

Economy

540 modern sanitation facilities to be established in Fuel stations

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The Government has launched a national-level initiative to install modern sanitation facilities at fuel stations across the country under the “Clean Sri Lanka” programme. 

An MoU was signed between the Presidential Task Force on Clean Sri Lanka, the Ministry of Energy and the island’s four major fuel providers: Ceylon Petroleum Corporation (CPC), Lanka IOC PLC (LIOC), Sinopec Energy Lanka (Pvt) Ltd and RM Parks (Pvt) Ltd.

Under the three-year programme, 540 modern public sanitation facilities will be established at selected fuel stations islandwide. 

By the end of 2025, at least 100 of these facilities are expected to be operational, providing clean and user-friendly amenities to travellers across the country.

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Economy

World Bank Group announces $1 Billion Support Package for Sri Lanka

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The World Bank Group today announced a major initiative to support job creation and unlock private sector growth in Sri Lanka, backed by more than $1 billion in financing over three years. The package targets sectors with high potential for employment and investment—energy, agriculture, tourism, and regional development.

The initiative aims to expand economic opportunity, strengthen local industry, and attract private capital to support long-term growth. It was announced after a meeting in Sri Lanka between President Anura Kumara Dissanayake and World Bank Group President Ajay Banga—marking the first visit by a Bank President in two decades and signaling a renewed commitment to the country’s economic recovery and future.

“This support from the World Bank Group is an investment in the people of Sri Lanka,” said President of Sri Lanka Anura Kumara Dissanayake. “It will help create jobs, support small businesses, and open up new opportunities across the country. We are committed to ensuring this partnership delivers real change for our communities.”

World Bank Group President Ajay Banga highlighted the importance of acting now to build on Sri Lanka’s progress.

“This is a moment of opportunity for Sri Lanka,” said World Bank Group President Ajay Banga. “With progress underway to stabilize the economy and restart growth, core elements for job creation are in place. Now is the time to accelerate reforms and create the conditions for private enterprise to thrive—particularly in sectors that can create jobs at scale.

The World Bank estimates that nearly one million young people will enter Sri Lanka’s workforce over the next decade, yet only about 300,000 jobs are projected to be created over the same period.

The new financing directly targets this gap—mobilizing public and private investment to create more and better jobs. The immediate sectors targeted in the $1 billion package includes:

Energy ($185 million): Supporting new solar and wind generation equivalent to 1 gigawatt of capacity, aimed at lowering electricity costs for families and businesses. The project is expected to mobilize over $800 million in private investment and includes $40 million in guarantees.

Agriculture ($100 million): Helping farmers and agribusinesses adopt new technologies, access markets, and attract private capital. The program will benefit more than 380,000 people—including 8,000 agri-food producers—and is expected to leverage $17 million in private financing.

Tourism ($200 million): Expanding the sector by protecting natural and cultural assets, creating jobs, and ensuring benefits flow to local communities.

Regional Development ($200 million): Investing in infrastructure, local industries, and job creation in historically underserved areas—including the Northern and Eastern Provinces.

This integrated approach—bringing together the World Bank’s financing, knowledge, and private sector tools—is a concrete example of the institution’s unique ability to support economic growth and job creation at every stage. It reflects the Bank’s focus on supporting job-generating sectors and enabling private investment.

The World Bank Group has been a trusted partner to Sri Lanka for more than 70 years, with current investments exceeding $2.2 billion. Today’s announcement deepens that partnership—focused on enabling opportunity, expanding private sector growth, and supporting the country’s path to a more resilient and inclusive economy.

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Economy

World Bank Group president to visit Sri Lanka after 20 years

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Ajay Banga is visiting Sri Lanka, marking the first presidential visit to the country by a World Bank Group president in nearly 20 years.  The visit comes at a critical moment, as Sri Lanka continues its path toward economic recovery and seeks to build a more resilient, inclusive, and private sector-led future.

The visit follows an invitation from President Anura Kumara Dissanayake, extended during a congratulatory call between the two leaders shortly after his appointment last November.

Mr. Banga’s trip reflects the strong and enduring partnership between the World Bank Group and Sri Lanka, which spans more than 70 years. His visit will focus on supporting job creation, boosting private investment, and driving an inclusive and sustainable economic recovery for the country.

While in Sri Lanka, Mr. Banga will meet with President Dissanayake, Prime Minister Harini Amarasuriya, and senior government and private sector leaders. These discussions will center on how Sri Lanka can overcome current challenges and seize new opportunities as it continues to recover economically and socially.

The World Bank Group currently supports Sri Lanka through a portfolio of projects worth $2.2 billion, including both public and private sector investments. Recent World Bank reports have noted Sri Lanka’s progress but also stressed the importance of tackling poverty and maintaining reform momentum to ensure long-term success.

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