SDB bank has formed a strategic alliance with the Smallholder Agribusiness and Resilience Project (SARP) by signing a Memorandum of Understanding (MoU), underscoring its dedication to sustainable agricultural development and financial inclusion in Sri Lanka.
SARP, a six-year initiative running from 2022 to 2027, is jointly funded by the International Fund for Agricultural Development (IFAD), the Government of Sri Lanka, and other stakeholders, with a total project cost of approximately USD 82 million. The project aims to enhance the resilience and market participation of rural households in climate-vulnerable districts such as Anuradhapura, Puttalam, Kurunegala, Matale, Vavuniya, and Mannar, focusing on the Malwathu Oya, Mee Oya, and Deduru Oya river basins.
According to IFAD financing guidelines, up to 45% of the project cost can be offered as a grant, with beneficiaries required to contribute the remaining 55% as equity. Acknowledging that many smallholder agribusinesses might encounter financial challenges in meeting this requirement, SDB bank will offer affordable credit facilities to eligible beneficiaries to address this funding gap. This partnership is designed to empower rural entrepreneurs to meet their equity contributions and successfully launch sustainable agribusiness ventures.
The initiative will be facilitated through SDB bank’s SME and Cooperative segments, utilizing the bank’s established product features and standard credit underwriting criteria. The financial shortfall of approved proposals will be covered through the bank’s own resources and available credit lines, ensuring structured and responsible lending practices.
The MoU was signed at the Ministry of Agriculture, Livestock, Lands and Irrigation in Battaramulla. Representing SARP, the agreement was signed by the Secretary to the Ministry of Agriculture, Mr. D. P. Wickramasinghe, while SDB bank was represented by its Executive Director/Chief Executive Officer, Mr. Kapila Ariyaratne. Also present at the event were Ms. Lathisha P. Liyanage, Additional Secretary – Development (Ministry of Agriculture, Livestock, Lands and Irrigation), and senior representatives from both institutions including Mr. Manoj Akmeemana, Deputy Chief Executive Officer, Mr. Chitral De Silva, Chief Business Officer, and Ms. Kanchana C. Hirimuthugoda, Manager – Value Chain Finance & Agri Entrepreneur Development from SDB bank, along with Mr. Anura Dissanayaka, Rural Finance Specialist, and other key officials from SARP.
Commenting on the partnership, Mr. Ariyaratne stated, “As a bank with a significant focus on strengthening national development through a robust and clearly defined agricultural strategy, this partnership with SARP reinforces our commitment to supporting the farming community. By providing affordable financing solutions alongside non-financial support, we aim to ensure sustainable growth within the agriculture sector while enhancing resilience in climate-vulnerable regions.”
Anura Dissanayaka, Rural Finance Specialist of SARP, added, “Collaborating with a bank that has a distinguished strategy on agriculture financing, SDB bank, enables us to strengthen access to finance for smallholder agribusinesses, ensuring that eligible beneficiaries can meet their equity requirements and participate meaningfully in value chains. This partnership plays a critical role in building long-term resilience and inclusive economic growth.”
Through this strategic collaboration, SDB bank continues to expand its reach into untapped agriculture-driven market segments, reinforcing its role in promoting rural entrepreneurship, enhancing financial inclusion, and supporting the sustainable development of Sri Lanka’s agriculture sector.
