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.