Sri Lanka Agriculture Sector Modernization Project

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The development objectives of Agriculture Sector Modernization Project for Sri Lanka are to support increasing agriculture productivity, improving market access, and enhancing value addition of smallholder farmers and agribusinesses in the project areas. This project has three components. 1) The first component, Agriculture Value Chain Development, seeks to promote commercial and export-oriented agriculture; attract and leverage investments from farmer producer organizations and agribusinesses for high value agriculture production and value addition; and provide the enabling environment, incentives, and access to finance for such investments through matching grants, technical assistance support, linkages to the commercial banking sector, and a Partial Credit Guarantee (PCG) facility. It has three sub components as follows: (i) investment preparation support; (ii) matching grants to farmer producer organizations and agribusinesses; and (iii) partial credit guarantee. 2) The second component, Productivity Enhancement and Diversification Demonstrations, aims at supporting smallholder farmers to produce competitive and marketable commodities, improve their ability to respond to market requirements, and move towards increased commercialization. It has four sub components as follows: (i) farmer training and capacity building; (ii) modern agriculture technology parks; (iii) production and market infrastructure; and (iv) analytical and policy advisory support. 3)The third component, Project Management, Monitoring and Evaluation, will support the Project Management Units (PMUs) of Ministry of Primary Industries (MOPI) and Ministry of Agriculture (MOA) and the Provincial Project Management Units (PPMUs) in the participating provinces in project management and coordination, technical supervision, financial management, procurement, social and environmental safeguards, and monitoring and evaluation (M&E).