Cabinet Approves $100 Million World Bank Loan for Northern and Eastern Development

The Cabinet of Ministers has approved a proposal to secure a $100 million loan facility from the World Bank’s International Development Association (IDA) for regional development in Sri Lanka’s Northern and Eastern provinces. This loan is part of a broader $1,000 million allocation scheduled by the IDA for Sri Lanka from 2026 to 2031.

The proposal was submitted by the President in his capacity as the Minister of Finance, Planning, and Economic Development. The funds are intended to support the Northern and Eastern Provinces Integrated Regional Development Project, aimed at enhancing regional infrastructure and economic growth.

The approval was granted during a cabinet meeting held on 09-02-2026. The project aligns with Sri Lanka’s broader development goals and is expected to have a significant impact on the targeted regions.

Separately, the Cabinet also approved a $2.73 million grant from the Social Development Fund for a Maternal and Early Childhood Nutrition Services Project in the districts of Nuwara Eliya, Rathnapura, Polonnaruwa, and Trincomalee. This project will run for three years and focuses on improving maternal and child health in these districts.