World Bank Pledges US$500 Million for Northern and Eastern Development in Sri Lanka
The World Bank has announced a US$ 500 million commitment over an eight-year period (2026–2034) to support the integrated economic development of Sri Lanka’s Northern and Eastern Provinces. The initiative, which will be executed in three phases, aims to promote sustainable economic growth through strategic investments in infrastructure, agriculture, fisheries, tourism, and information technology.
During a meeting held on Tuesday (April 1) at the Northern Province Governor’s Secretariat, a World Bank delegation met with Governor N. Vedanayagan to discuss the region’s development needs and opportunities. The talks focused on reviving economic activity, tackling post-conflict employment challenges, and building value-added industries to enhance export potential.
Governor Vedanayagan underscored the long-term effects of war on the region, noting setbacks in agriculture due to unstable pricing and inadequate irrigation. He stressed the importance of village-level development and improving connectivity infrastructure, especially local agricultural roads, to unlock growth in key sectors like tourism and farming.
The World Bank assured that its development strategy will go beyond infrastructure and focus on integrated, sustainable economic reform. Delegates also visited Neduntheevu (Delft Island) and identified tourism as a promising sector, although transportation limitations remain a barrier.
A final round of discussions with the National Planning Department is scheduled for next week in Colombo to finalize the implementation framework. The World Bank’s development model is expected to incorporate input from provincial officials and sectoral experts to ensure a comprehensive, locally-informed approach.
