SDB Bank Partners with SARP to Support Rural Agribusiness Growth

SDB bank has signed a Memorandum of Understanding with the Smallholder Agribusiness and Resilience Project(SARP) to strengthen rural agribusiness development and expand financial inclusion in Sri Lanka.

SARP is a six-year initiative from 2022 to 2027 funded by the International Fund for Agricultural Development(IFAD), the Government of Sri Lanka, and other partners, with a total project value of about USD 82 million. The programme focuses on improving the resilience and market participation of rural households in climate-vulnerable districts including Anuradhapura, Puttalam, Kurunegala, Matale, Vavuniya, and Mannar, covering the Malwathu Oya, Mee Oya, and Deduru Oya river basins.

Under IFAD guidelines, up to 45 percent of project costs may be provided as grants, while beneficiaries contribute the remaining 55 percent as equity. Through this partnership, SDB bank will offer affordable credit facilities to eligible beneficiaries who face financial constraints in meeting this requirement, helping them implement sustainable agribusiness ventures.

The programme will be delivered through SDB bank’s SME and Cooperative segments, using the bank’s existing product features and credit assessment processes. Funding gaps for approved proposals will be supported through the bank’s own resources and available credit lines.

The MoU was signed at the Ministry of Agriculture, Livestock, Lands and Irrigation in Battaramulla by Secretary to the Ministry D. P. Wickramasinghe and SDB bank Executive Director and Chief Executive Officer Kapila Ariyaratne, in the presence of officials from both institutions.

The partnership aims to strengthen access to finance for smallholder agribusinesses, promote rural entrepreneurship, and support sustainable growth within Sri Lanka’s agriculture sector while enhancing resilience in climate-vulnerable communities.