Colombo: Sri Lanka has signed a financing agreement with the International Development Association (IDA) of the World Bank Group for 100 million U.S. dollars to support the Integrated Rurban Development and Climate Resilience Project, the Ministry of Finance, Planning and Economic Development said in a statement on Monday. The agreement was signed by Treasury Secretary Harshana Suriyapperuma on behalf of the Sri Lankan government, and David N. Sislen, World Bank Country Director for Maldives, Nepal, and Sri Lanka, representing the IDA.

According to Namibia Press Agency, agriculture continues to play a central role in Sri Lanka, employing more than 25 percent of the labor force and contributing nearly 7 percent to the national GDP. The sector also accounts for about 22 percent of annual foreign exchange earnings. The total project cost is estimated at 120 million U.S. dollars, of which 100 million will come from the World Bank and 3 million from domestic funds. An additional 17 million dollars is expected through beneficiary contributions.

The project aims to establish productive partnerships between smallholder farmers, buyers, and the public sector. The focus will be on improving market linkages and value chains, which is expected to enhance the agricultural sector’s resilience to climate change impacts.