European Union-financed AgriFI launches Country Window Sri Lanka to boost smallholder farmers
9 April 2025, Colombo, Sri Lanka – The European Union (EU) in Sri Lanka, in collaboration with EDFI Management Company (EDFI MC), launches today the AgriFI – Sri Lanka Country Window at the inaugural event of the “Sustainable Finance – Pathways and Possibilities” series.
The AgriFI Country Window Sri Lanka initiative marks a significant step toward strengthening sustainable and inclusive agricultural value chains in Sri Lanka, with a dedicated country window of EUR 8 million. The program aims to improve the livelihoods of smallholder farmers by supporting resilient private sector enterprises, financial institutions, and innovative solutions to tackle food security challenges. The initiative focuses on promoting organic farming and reducing post-harvest losses through cold chain improvements. Its goal is to increase production, add value, and raise incomes for 10,000 smallholder farmers across the country. By addressing critical gaps in agricultural financing and infrastructure, the initiative seeks to empower farmers and enhance food security.
Dr. Johann Hesse, the Head of Cooperation at the European Union Delegation to Sri Lanka and the Maldives said: “We are pleased to see the launch of our new AgriFI project in Sri Lanka today.
This 8 million EUR project is fully funded by the European Union. It will unlock new opportunities for smallholder farmers, processors, and agri-businesses alike. By investing in sustainable, inclusive, value-adding, and market-driven solutions, we are not only strengthening Sri Lanka’s food systems—we are supporting the country to build resilience and improve livelihoods for many producers.”
Rodrigo Madrazo Garcia de Lomana, CEO of EDFI Management Company, added: “We are proud to collaborate with the European Union Delegation in Sri Lanka in launching this transformative initiative. By investing in organic agriculture and reducing post-harvest losses by improving downstream agriculture value chains, we aim to empower smallholder farmers to thrive in a competitive market while addressing food security challenges.”
The event, organised under the EU-funded Green Policy Dialogue Facility and implemented by Expertise France, highlights how sustainability can be transformed into tangible economic opportunities, aiming to drive growth and resilience while accelerating the implementation of green strategies tailored to Sri Lanka’s needs.
The first signed investment under the AgriFI Sri Lanka Country Window is also presented – a partnership with Sarvodaya Development Finance PLC (SDF). This collaboration is providing farmers access to essential agricultural machinery through affordable leasing schemes, enabling them to boost productivity and profitability.
The launch event featured an engaging panel session moderated by Professor Sirimal Abeyratne, Emeritus Professor in Economics at the University of Colombo and Executive Director of the Centre for Poverty Analysis. Panelists include Ms. Kumudini Vidyalankara, Director of Environment Planning and Economics at the Ministry of Environment; Ms. Perrine Duffaure, Investment Officer at EDFI MC – AgriFI; Mr. Nilantha Jayanetti, CEO of Sarvodaya Development Finance; and Dr. Lalith Welamedage, an expert on social enterprises and SMEs. Together, they provided insights into sustainable finance opportunities, green reforms in Sri Lanka, and actionable strategies for accessing funding sources.
Nilantha Jayanetti, SDF, highlighted the importance of this collaboration: “Sri Lanka’s agricultural sector is vital to our economy but faces challenges such as limited access to long term finance and modern equipment. The AgriFI initiative addresses these gaps by supporting innovative solutions that empower farmers.”
About EDFI Management Company
EDFI Management Company (EDFI MC) is a multilaterally owned impact asset manager which delivers innovative development finance solutions that enable European DFIs, development banks and private sector investors to increase the scale and impact of their work. The company focuses on business models, technologies and geographies where other investors have not been able to operate at the desired scale given their resources and investment criteria. AgriFI, the EU Agriculture Financing Initiative, is an impact investment facility funded by the European Union, managed by EDFI Management Company, with a mandate to unlock, accelerate and leverage sustainable investments in medium, small and micro agri-enterprises (MSME) that operate in developing countries, with a specific focus on smallholder’s inclusiveness.
For more information, visit www.agrifi.eu and www.edfimc.eu.
About AgriFI Sri Lanka Country Window:
A EUR 8 million country window dedicated to sustainably increase the production and incomes of smallholder farmers in Sri Lanka, by investing in resilient private sector enterprises, financial institutions and/or funds focusing on farmers’ livelihood improvement and tackling domestic food security issues. AgriFI aims to support organic farming and agri businesses providing post-harvest losses solutions, namely through cold chain improvements. This country windows aims to increase the value-added, production and incomes of 10,000 smallholders. For more information visit: https://edfimc.eu/what-we-do/agrifi/sri-lanka-country-window/
