Sri Lanka has signed a US$125 million credit with the World Bank in order to modernise its agricultural sector.
“Sri Lanka aims to make the sector more efficient and attractive as a modern business, more responsive to consumer demand, and more environmentally sustainable and resilient to climate change,” says the World Bank.
It is estimated that over the last decade 30 percent of the population has continued to be employed in the agricultural sector, although the sector’s share in national GDP has declined to 10 percent.
Idah Pswarayi-Riddihough, World Bank Country Director for Sri Lanka and the Maldives says, “Sri Lanka’s history is deeply rooted in agriculture and its paddy cultivation tradition. Past practices can inform the future by preserving and building on the country’s farming traditions. There is now space to diversify and promote high-value, export-oriented food crops.” She added that such shift would be crucial for poverty reduction, reducing inequality and income growth.
It is estimated that 30,000 farming households will benefit from grants and agricultural technology demonstrations. Another 20,000 will be given access to technical and business training. The project will be implemented in the North-East, Central, North-Central and Uva provinces.