Sri Lanka - Agriculture Sector Modernization Project

Overview & Synopsis

Ratings for the Agriculture Sector Modernization Project for Sri Lanka were as follows: outcome and Bank performance was moderately satisfactory, and monitoring and evaluation (M and E) quality was modest. Some lessons learned included: effective project implementation requires strong institutional coordination and robust monitoring systems. A more integrated approach aligning agribusiness with POs in joint proposals can improve outcomes, strengthening business linkages and sustained impact. Future projects should promote partnerships with multi-year business planning, particularly for perennial crops, to ensure long-term viability. The use of Public Unlisted Company (PUCs) to formalize farmer groups and strengthen market linkages enabled smallholders to aggregate production, improve governance, and develop business capabilities necessary to engage with formal markets. Future projects should ensure early engagement with financial institutions and provide tailored financial literacy and linkage support to maximize the impact of financing mechanisms. Projects involving agricultural infrastructure or land-based investments should address land tenure and access issues from the outset.