$ 22 m loan from IFAD to improve irrigation, crop diversification

The International Fund for Agricultural Development (IFAD) will provide a US$22.23 million loan to Sri Lanka for improved irrigation infrastructure and crop diversification and help create new market opportunities for smallholder farmers.

Ambassador Asitha Perera and Kanayo F. Nwanze, President IFAD signed the loan agreement for the Iranamadu Irrigation Development Project.

To respond to the needs of smallholder farmers in the Kilinochchi district of the Northern province, the project will improve the

downstream irrigation infrastructure of the Iranamadu reservoir.

The reservoir, which has not been maintained adequately for many years, will be rehabilitated to increase its water-holding capacity.

The project is expected to benefit about 7,000 households.

In addition, farmers will receive training on water saving management methods that include climate change adaptation and mitigation measures such as rainwater harvesting.

This will enable them to use irrigation water more efficiently for sustaining their crops and contract farming.

Women's groups would also be formed and strengthened by offering training and development of vegetable production. Infrastructure development is a high priority of the government to

accelerate growth in the country. Since 1978, with this new program, IFAD will have financed 16 programs and projects in Sri Lanka for a total investment of about $ 400 million benefitting more than 500,000 households.