Press Releases
Entering into an Agreement on Debt Restructuring between Federal Republic of Germany and the Government of the Democratic Socialist Republic of Sri Lanka in relation to the External Debt Restructuring Process
Entering into the bilateral Agreement with the Federal Republic of Germany in relation to the External Debt Restructuring Process marks a significant milestone and reflects the Government of Sri Lanka’s continued commitment to conclude the debt restructuring process successfully in order to restore debt sustainability and thereby revamp Sri Lanka’s economy.
Following bilateral discussions after the conclusion of the MoU with the Official Creditor Committee (OCC), the Federal Republic of Germany has agreed to extend a debt relief measure by rescheduling the outstanding debts.
The Bilateral Agreement was signed by Dr. Harshana Suriyapperuma, Secretary of the Ministry of Finance, Planning and Economic Development, on behalf of the GoSL, and H.E. Ms. Sarah Hasselbarth, Charge’ d’Affaires a.i., on behalf of the Federal Republic of Germany, at the Ministry of Finance.
The estimated rescheduled debt under this agreement amounts to Euro 188 million.
Entering into the Agreement will certainly pave the way to developing further the deep and longstanding bilateral relationships between the Federal Republic of Germany and the Government of Sri Lanka. The Government of Sri Lanka extends its sincere appreciation to the Government of the Federal Republic of Germany for its continued support and cooperation.
Ministry of Finance, Planning and Economic Development
Colombo 01
On January 07, 2026
Government of Sri Lanka and European Union Sign Euro 8 Million Grant Agreement for the Implementation of the “AgriGreen Initiative – Green Economic Growth through Sustainable Agriculture Practices” Project
The Government of Sri Lanka signed a Grant Agreement with the European Union (EU) to launch a new initiative under “the AgriGreen Initiative – Green Economic Growth through Sustainable Agriculture Practices” Project.
The EUR 8 million grant, provided by the European Union, will support a project jointly developed by the Ministry of Plantation and Community Infrastructure as lead-Ministry, Rubber Development Department and Rubber Research Institute of Sri Lanka, and in partnership with the EU.
The initiative will support Sri Lanka’s transition to green economic growth where sustainable consumption and production practices and food security are ensured. Further, the project aims to catalyze a shift to more sustainable and environmentally responsible agricultural practices in selected value chains of rubber sector with special attention to youth and women.
Dr. Harshana Suriyapperuma, Secretary to the Ministry of Finance, Planning and Economic Development, on behalf of the Government of Sri Lanka, and Dr. Johann H. Hesse, Head of Cooperation, Delegation of the European Union to Sri Lanka, on behalf of the EU were exchanged the signed Grant Agreement.
The Secretary of the Ministry of Finance, Planning and Economic Development expressed sincere appreciation to the European Union for its valuable support, noting that the project aligns closely with Sri Lanka’s sustainable development agenda, including market-oriented value addition and improved integration with export markets.
This agreement stands as a testament to the strong and enduring partnership between Sri Lanka and the EU. It marks an important milestone in our shared commitment to green economic growth, sustainable consumption and production practices and food security.
Ministry of Finance, Planning and Economic Development, Colombo 01
On January 07, 2026
Financial Aid from the Asian Development Bank (ADB) for the Implementation of Transforming Irrigation Systems for Improved Food Security Project (Grant Financing)
The Grant Agreement for the Transforming Irrigation Systems for Improved Food Security Project was formally signed on 19 December 2025 at the General Treasury, Colombo, between the Government of Sri Lanka and the Asian Development Bank (ADB). Dr. Harshana Suriyapperuma, Secretary, Ministry of Finance, Planning and Economic Development, signed on behalf of the Government of Sri Lanka, while Ms. Cholpon Mambetova, Country Operations Head, ADB Sri Lanka Resident Mission, signed on behalf of the Asian Development Bank.
Funding for the project will be mobilized through the Japan Fund for Prosperous and Resilient Asia and the Pacific (JFPR) amounting to USD 3 million, along with USD 1.63 million in counterpart funding from the Government of Sri Lanka.
The project aims to introduce innovative, climate-resilient irrigation solutions to strengthen water security and support agriculture in Sri Lanka’s Dry Zone, which continues to face prolonged droughts, irregular rainfall, and declining crop productivity. Nearly 99% of the national irrigation network consists of open, gravity-fed earthen canals with low conveyance efficiency, resulting in substantial water losses and reduced yields.
Through this initiative, four pilot Pipe Distribution Network (PDN) schemes will be implemented in the North Western and Uva Provinces, covering approximately 877 hectares across existing irrigated command areas and adjacent rain-fed uplands. The identified locations include Kirindigalla GN Division under Ridi Bendi Ela feeder canal, feeder canal areas under the Magalla Reservoir, feeder canal areas under Inginimitiya Reservoir in the North Western Province, and the Meegas Ara small tank cascade system in the Uva Province.
The Ministry of Agriculture, Livestock, Lands and Irrigation will serve as the Executing Agency, while the Irrigation Department will act as the Implementing Agency responsible for technical delivery. The project will be implemented from 2026 to 2029.
Ministry of Finance, Planning and Economic Development
19 December 2025
USD 50 Million Financial Assistance from the International Development Association (IDA) of the World Bank for Additional Financing to the General Education Modernization (GEM) Project
The Government of Sri Lanka has secured financial assistance amounting to USD 50 million from the International Development Association (IDA) of the World Bank Group to support the additional financing of the General Education Modernization (GEM) Project.
The Financing Agreement for this operation was signed on December 19, 2025 by Dr. Harshana Suriyapperuma, Secretary to the Treasury, on behalf of the Government of Sri Lanka, and Mr. David N. Sislen, Division Director for Maldives, Nepal, and Sri Lanka of the World Bank Group, on behalf of the IDA.
The General Education Modernization Project has been implemented from 2018 until June 2025, with the objective of improving the quality, relevance, and equity of general education in Sri Lanka. Building on the achievements of the initial phase, the Ministry of Education, Higher Education and Vocational Education has identified the need for further financial support to advance the next phase of education reforms. This additional financing will facilitate the implementation of new curriculum reforms and support key modernization initiatives aligned with national priorities. These include integrating global education standards while enhancing quality through curriculum modernization for the subjects English, Mathematics, digital learning, teacher development, quality assessments and school improvements.
The World Bank has provided USD 50 million as an Additional Financing Facility to continue and expand the objectives of the GEM Project, reinforcing the Government’s commitment to transforming general education in Sri Lanka.
This press release is issued by the Department of External Resources on December 22, 2025.
USD 200 million Loan Assistance from the Asian Development Bank
The Government of Sri Lanka had discussions with the Asian Development Bank (ADB) to mobilize a loan amounting to USD 200 million to continue the Mahaweli Water Security Investment Program (MWSIP) – Stage 2 as a priority project of the Government. The loan will cover a part of the total project cost.
The MWSIP-Stage 2 which supports for enhancing food and water security and building climate resilience, comprises of two components. (1) completion of the North Central Province Canal irrigation infrastructure (2) establishing commercial agriculture development with distribution networks. Following activities will be implemented under these two components.Completion of the remaining section of the main tunnel, including tunnel excavation of approximately 7 km and finishing works.
I. Construction of open or covered canals, conducts, and small tunnel sections with a total length of approximately 68 km.
II. Construction of approximately 8 km of Ellapothana Irrigation Extension Canal.
III. Establishment of Commercial Agricultural Development with improved distribution networks by establishing approximately 13 pressure distribution networks to provide reliable and efficient irrigation water for high value crops and field crops.
IV. Transformation of agricultural production systems through introduction of climate resilient value chains and expanding access to financial services and agriculture extension services for farmers.
The objective of the project is to enhance agricultural productivity, farmer incomes, and climate resilience in the North Central Province (NCP).
Accordingly, the above-mentioned loan agreement was signed at the Treasury in Colombo by Dr. Harshana Suriyapperuma, Secretary, Ministry of Finance, Planning and Economic Development, on behalf of the Government of Sri Lanka, and Mr. Takafumi Kadono, Country Director, ADB Sri Lanka Resident Mission, on behalf of the Asian Development Bank on 15 December 2025.
Ministry of Finance, Planning and Economic Development
15 December 2025