In brief
The new initiative, backed by the World Bank Group and IFAD, aims to digitalize farming practices, enhance climate resilience, and attract private sector investment, targeting significant GDP, export, and employment impacts.
COLOMBO, Oct. 31 (Xinhua) – Sri Lanka launched the AgriConnect program, a $665 million investment backed by the World Bank Group and the International Fund for Agricultural Development (IFAD), to modernise the country’s agriculture sector and boost its contribution to the national economy.
The integrated implementation plan was announced by Sri Lankan officials and specifies that a $550 million share will come from the World Bank Group while IFAD will provide $115 million. The programme also seeks to attract up to $170 million of additional private‑sector investment over the next five years.
Central to AgriConnect is the goal of linking 900,000 small‑holder farmers to agricultural value chains by 2030. The plan will deploy digital technologies, such as farm‑management platforms and mobile payment systems, to bring farmers closer to processors and retailers. Digitalization, the process of converting information into a digital format, is expected to make market information and credit access more timely and affordable for rural producers.
The term "value chain" refers to the sequence of activities that start with raw‑material production, pass through processing and distribution, and end with the final consumer. By encouraging tighter integration along this chain, the programme hopes to cut transaction costs, improve product quality and secure fair prices for farmers.
AgriConnect’s focus on climate resilience is designed to address the increasing frequency of extreme weather events that threaten crop yields. The initiative will promote climate‑adapted crop varieties, soil‑health management and efficient irrigation techniques that reduce water use and safeguard yields.
Statistics released at the launch highlighted that the agriculture and food sector accounts for about 15 percent of Sri Lanka’s gross domestic product, 30 percent of merchandise exports and roughly one third of total employment. The programme’s emphasis on market orientation and technology adoption is intended to lift the sector further toward these economic indicators while supporting rural livelihoods.
Officials noted that attracting private investment will be a key lever; the private sector will be encouraged to invest in supply‑chain infrastructure, agribusiness ventures and high‑value crops. The World Bank Group’s investment support will be supplemented with technical assistance, including data analysis and market research, to help farmers understand demand trends and price signals.
Looking ahead, Sri Lanka’s new agricultural strategy positions the country to respond to global market dynamics while mitigating environmental risks. By embedding technology and climate‑smart practices into the very fabric of its farming communities, AgriConnect aims to secure a more resilient, profitable and export‑competitively positioned agricultural sector by 2030.
