Cabinet approves $100mn World Bank funding for Northern, Eastern Provinces

Sri Lanka
By Editor_1

COLOMBO – Sri Lanka’s Cabinet has approved a proposal to sign financial agreements with the World Bank’s International Development Association (IDA) to secure a 100 million US dollar loan for regional development in the North and East.

The loan facility forms part of a broader 1,000 million US dollar allocation scheduled by the IDA for Sri Lanka between 2026 and 2031 to support economic growth and stability.

Officials said loan negotiations between the government and the World Bank Group were successfully concluded following initial Cabinet approval granted on February 9, 2026.

According to the official Cabinet decision, the project aims to accelerate economic growth in the Northern and Eastern Provinces and boost competitiveness through sustainable regional development.

The Integrated Regional Development Program focuses on strengthening key sectors with high economic potential while creating expanded economic opportunities across the two provinces. It will also focus on supporting micro, small, and medium-scale enterprises (MSMEs), enhancing local livelihoods, and improving overall regional connectivity.

Speaking at the weekly post-Cabinet media briefing, Cabinet Spokesman Minister Nalinda Jayatissa said the Cabinet had approved the proposal by the President, in his capacity as the Minister of Finance, Planning and Economic Development, to enter into the necessary agreements to obtain the 100-million- dollar financial facility.

The funding is expected to help drive local business development, revive key economic sectors, and promote long-term inclusive growth across the Northern and Eastern regions.

-economynext.com

Editor_1
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