In brief
Sri Lanka announced the AgriConnect program, a $665 million investment from the World Bank Group and the International Fund for Agricultural Development, aiming to modernise its farming industry and connect 900,000 farmers to market chains by 2030. The initiative also seeks to generate private‑sector capital and make the sector climate‑resilient and market‑oriented.
On Friday, Colombo hosted a press briefing where Sri Lanka’s government unveiled the AgriConnect program, a $665 million investment package backed by the World Bank Group and the International Fund for Agricultural Development (IFAD). Xinhua reported that the initiative was launched to modernise the country’s agriculture sector and deepen its contribution to the national economy.
The $665 million total is broken down into $550 million from the World Bank Group and $115 million from IFAD. Officials presented an integrated implementation plan that targets 900,000 Sri Lankan farmers, aiming to embed them more closely into agricultural value chains by 2030 through digitalisation and other modernisation measures.
According to the launch information released in Colombo, the agriculture and food sector accounts for roughly 15 percent of Sri Lanka’s gross domestic product, 30 percent of merchandise exports, and about one third of total employment. The program is therefore positioned as a critical lever for job creation and export growth.
In addition to the public‑sector capital, officials said the AgriConnect initiative would draw up to $170 million of additional private‑sector investment over the next five years. The aim is to create a climate‑resilient and market‑oriented industry capable of meeting the country’s increasing domestic demand and expanding export opportunities.
The World Bank Group’s $550 million tranche includes investment support in technology, infrastructure, and capacity‑building activities that are intended to make Sri Lanka’s farms more efficient, data‑driven and responsive to environmental pressures.
IFAD’s contribution of $115 million focuses on programmes that empower smallholder producers and diversify income sources, echoing the foundation’s broader mandate to enhance food security and rural development globally.
The launch also highlighted the program’s expected synergy with Sri Lanka’s digital transformation agenda. By facilitating the use of digital platforms for market information, payments, and supply‑chain coordination, the AgriConnect plan seeks to reduce transaction costs and improve price discovery for small farmers.
The initiative’s climate‑resilience dimension includes measures such as crop diversification, soil health monitoring and the promotion of agro‑forestry practices. Officials noted that such steps are necessary given the country’s vulnerability to extreme weather events, including recent cyclones and monsoon‑induced flooding.
During the briefing, government representatives stressed that the program would not only support production but also add value to Sri Lanka’s agricultural exports. By strengthening linkages between producers and processors, the AgriConnect plan aims to move up the value chain, boosting export earnings and contributing to the country’s trade balance.
A spokesperson for the Ministry of Agriculture clarified that the 2030 target involves not just the addition of input services but also the deployment of advanced analytics tools. These tools would help farmers make evidence‑based decisions about planting schedules, pest control and irrigation, thereby improving yield reliability.
The program will be overseen by a joint steering committee comprising representatives from the World Bank Group, IFAD, the Sri Lankan government and private‑sector partners. The committee is tasked with monitoring progress against agreed milestones and ensuring the efficient use of funds.
The announcement was welcomed by international development agencies that have long advocated for technology‑driven reforms in South Asia’s agricultural sector. They view the AgriConnect initiative as a concrete step toward integrating smallholder farms into the global economy.
At the same time, analysts cautioned that the success of the plan will depend heavily on sustained support from the private sector and resilient governance structures. Without clear incentives for entrepreneurs and reliable regulatory frameworks, the program may struggle to mobilise the projected $170 million private investment.
Moving forward, the Sri Lankan government has indicated it will periodically release detailed implementation reports. These updates are expected to include progress data on farmer connectivity, investment inflows, and climate adaptation outcomes, providing transparency to both domestic and international stakeholders.
In sum, the AgriConnect program represents a significant policy shift toward modernising Sri Lanka’s agricultural sector, reaffirming the country’s commitment to building a more resilient, market‑oriented and digitally integrated farming economy.
