Sri Lanka's cabinet has approved a $100 million World Bank-funded project aimed at spurring economic growth in the Northern and Eastern provinces through enterprise development and infrastructure improvements.
The Cabinet of Ministers has given approval for Sri Lanka to secure $100 million in financial assistance from the International Development Association, part of the World Bank Group, for a regional development initiative spanning the Northern and Eastern provinces. The funding represents a portion of a broader $1,000 million commitment the World Bank has allocated to Sri Lanka for the 2026-2031 period.
Negotiations between the Government of Sri Lanka and the World Bank have been finalized following cabinet approval in early February 2026. The President, acting in his capacity as Minister of Finance, Planning, and Economic Development, has been authorized to enter into the necessary financial agreements to secure the credit facility.
The Northern and Eastern Provinces Integrated Regional Development Project is designed to strengthen economically viable sectors within the two provinces while fostering growth of micro, small, and medium-scale enterprises. According to government descriptions, the initiative will enhance livelihood opportunities through expanded connectivity, boost regional competitiveness, and promote sustainable economic development in the areas targeted by the scheme.
