Announcement of Sri Lanka to Improve Agricultural Production with Twenty-Three Million US Dollars IDA Credit on May 16, 1983

FOR IMMEDIATE RELEASE eWorldBank 1818 H Street, N.W ., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 83/79 Contact: Hugh Blackman May 16, 1983 (202) 477-3573 SRI LANKA TO IMPROVE AGRICULTURAL PRODUCTION WITH $23 MILLION IDA CREDIT Sri Lanka will strengthen agricultural production bases in two districts to benefit about 203,000 people, thr;-Intt~rnati.onal Development Association (IDA) announced today. IDA, the World Bank's affiliate for concessionary lending, is providing a credit of SOR 21.4 million ($23 million) for the $31.2 million project. Beneficiary farmers will be providing $0.5 million and the Government will contribute the rema1nder of the cost. The project will assist in the development of Mannar and Vavuniya districts, which are among the L=as t developed and poorest in Sri. Lanka, by raising prnductivity , employment, Incomes, and living standards. The main thrust of the project will be to help improve the production of paddy, subsidiary crops, horticulture, and forestry and provide the support services essential for increased production. • The project will rehabilitate some 70 irrigation systems, install about 15 tubewells and improve water management practices; establish a fisheries service center i.n Mannar; provide agricnlt11ral credit to smallholders for the construciton of wells and purchase of farm animals and equipment; an<l improve the availability and distribution of agricultural inputs. The project will also include forestry development on about 1,400 hectares of degraded and marginal lands and horticulture development on about 100 hectares. These investments will be complemented with measures to rehabilitate and strengthen the economic and social infrastructure in the two districts. The project will provide electricity to 23 villages; improve health care and educA.tion servjces and construct 100 co,nmunity wells. Funds will also be provided for an evaluation of the project's impact. Since beginning operations in Sri Lank~, the World Bank has provided nine Bank loans totalling $111.6 million and 33 IDA credits totalli.ng $618.4 million. About 50~{ of the assistance has been for the agricultural sector. World Bank support for Sri Lanka ts aimed at increasing food production and reducing dependence on food imports by raising productivity, employment, an<l the incomes of the rural population. The IDA credit is for 50 years, including 10 years of grace; it carries no interest but has a smal.l annual service charge (0.5% on the •• undisbursed balances of the credit and 0.75% an the disbursed balances) • NOTE: -NOTE: IDA credits are denominated in SDRs ( Special Duwing Rights ·r-;- which are valued on the basis of a "basket" of currencies. The U.S. dollar equivalent of the SDR amount of the IDA credit teflects the exchange rates exis t·I~ng at the time of the negotia tion of the credit.