The Cabinet of Ministers has approved the signing of financial agreements to secure a US$100 million facility from the World Bank’s International Development Association (IDA) for an integrated regional development programme in Sri Lanka’s Northern and Eastern Provinces.
The money forms part of a wider World Bank Group commitment to provide US$1 billion to Sri Lanka between 2026 and 2031. Of that, US$100 million has been earmarked for the Northern and Eastern Provinces Integrated Regional Development Programme.
Negotiations now concluded
Cabinet approval to open negotiations on the facility was granted on 9 February 2026. Talks between the Government of Sri Lanka and the World Bank Group have since been completed, clearing the way for the agreements themselves to be signed.
What the programme covers
The programme is aimed at strengthening groups with economic potential, supporting micro, small and medium-scale enterprises, widening economic opportunities and improving regional connectivity.
It is also expected to improve livelihoods through sustainable regional development, while accelerating growth and improving the competitiveness of the two provinces.
The Cabinet approved the proposal submitted by President Anura Kumara Dissanayake in his capacity as Minister of Finance, Planning and Economic Development, to enter into the necessary financial agreements with the IDA.
The Northern and Eastern Provinces continue to lag national averages on income and infrastructure, and successive governments have channelled concessional multilateral funding towards closing that gap.
