Sri Lanka

US$22.2 million IFAD loan to Sri Lanka for poverty reduction

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Improved irrigation practices will help increase crop yields

Rome, 30 January 2012 – The International Fund for Agricultural Development (IFAD) will provide a US$22.23 million loan to the Republic of Sri Lanka for improved irrigation infrastructure and crop diversification, and help create new market opportunities for smallholder farmers.

Asitha Perera, Ambassador of the Democratic Socialist Republic of Sri Lanka, and Kanayo F. Nwanze, President of IFAD, today signed the loan agreement for the Iranamadu Irrigation Development Project.

To respond to the needs of smallholder farmers in the Kilinochchi district of the Northern province, the project will improve the downstream irrigation infrastructure of the Iranamadu reservoir. The reservoir, which has not been maintained adequately for many years, will be rehabilitated to increase its water-holding capacity. The project is expected to benefit about 7,000 households.

In addition, farmers will receive training on water saving management methods that include climate change adaptation and mitigation measures such as rainwater harvesting. This will enable them to use irrigation water more efficiently for sustaining their crops and contract farming. Women’s groups would also be formed and strengthened by offering training and development of vegetable production.

Infrastructure development is a high priority of the government to accelerate growth in the country.

Since 1978, with this new programme, IFAD will have financed 16 programmes and projects in Sri Lanka for a total investment of about $ 400 million benefitting more than 500,000 households.