US$100 million allocated for development programmes in North and East

13-Aug-2026

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The Cabinet has approved financial assistance of US$100 million to implement integrated development programmes in the Northern and Eastern Provinces.

Cabinet Spokesman and Minister Nalinda Jayatissa made the announcement while briefing the media on Cabinet decisions at the Government Information Department on August 11, 2026.

According to his announcement, the International Development Association (IDA) of the World Bank Group will provide US$1,000 million in financial assistance to Sri Lanka during the 2026–2031 period, of which US$100 million has been allocated for implementing integrated regional development projects in the Northern and Eastern Provinces.

In accordance with the approval granted at the Cabinet meeting held on February 9, 2026, negotiations on the financing agreement between the Government of Sri Lanka and the World Bank Group have been concluded.

Through the proposed integrated regional development programme, the Government expects to strengthen areas with economic potential, promote micro, small and medium-sized enterprises, increase economic opportunities and expand connectivity, thereby improving people’s livelihoods. The programme is also expected to accelerate regional economic growth and enhance competitiveness in the Northern and Eastern Provinces through sustainable regional development.

Accordingly, Cabinet approved the proposal submitted by the President, in his capacity as Minister of Finance, Planning and Economic Development, to enter into the necessary financing agreements to obtain a US$100 million financial facility from the International Development Association of the World Bank Group for the implementation of the proposed programme, he said.