Government of Sri Lanka and European Union sign Euro 8 Million Financing Agreement to Support Sustainable Economic Recovery through Biodiversity Conservation and Waste Management

Government of Sri Lanka and European Union sign Euro 8 Million Financing Agreement to Support Sustainable Economic Recovery through Biodiversity Conservation and Waste Management

The Government of Sri Lanka signed a EUR 8 Million Financing Agreement with the European Union (EU) on 23.09.2025 to launch a new initiative aimed at fostering sustainable economic recovery through improved biodiversity conservation and solid waste management. It will support a project in the provinces Central, Uva and North Western, jointly developed by the Ministry of Public Administration, Provincial Councils and Local Government as lead-Ministry, the Ministry of Environment, and the EU.

It will contribute to both environmental protection and improved public health. This project builds on existing EU support to the Central and Uva Provinces to support livelihood development across value chains such as tourism.

PRESS RELEASE

The Government of Sri Lanka signed a Financing Agreement with the European Union (EU) on 23.09.2025 to launch a new initiative aimed at fostering sustainable economic recovery through improved biodiversity conservation and solid waste management.

The EUR 8 million grant, provided by the European Union, will support a project jointly developed by the Ministry of Public Administration, Provincial Councils and Local Government as lead-Ministry, the Ministry of Environment, and the EU.

The initiative will focus on three provinces, Central, Uva, and North Western, where it will support biodiversity conservation by restoring degraded ecosystems, implementing targeted conservation strategies, and promoting sustainable land-use practices. It will also address the growing need for effective solid waste management systems, contributing to both environmental protection and improved public health. This project builds on existing EU support to the Central and Uva Provinces to support livelihood development across value chains such as tourism.

This project aligns closely with the Government's National Policy Statement, "A Thriving Nation - A Beautiful Life", which acknowledges the urgent need to balance economic development with environmental sustainability. The Government recognizes that past efforts have fallen short in creating an eco-friendly and resilient economy, and this partnership with the EU is a significant step forward in correcting that course.

The Financing Agreement was formally signed on 23^rd September 2025 by Dr. Harshana Suriyapperuma, Secretary to the Ministry of Finance, Planning and Economic Development, on behalf of the Government of Sri Lanka, and H.E, Carmen Moreno, Ambassador of the European Union to Sri Lanka, on behalf of the EU.

"Biodiversity is one of the most important assets of Sri Lanka, and through this project we will work together with the authorities to strengthen its protection by improving management of waste. EU experience, technology and private sector investments are key elements in the project that will support Sri Lankan policies to connect to the world. Protection of biodiversity contributes to the global health and the fight against climate change", said H.E. Ambassador Carmen Moreno, highlighting how the European Union contributes to these connections through the Global Gateway Strategy.

This agreement not only represents a tangible commitment to sustainable development but also reaffirms the strong and enduring partnership between Sri Lanka and the European Union. It marks another milestone in the shared commitment to environmental stewardship, inclusive growth, and long-term economic resilience.

H.E. Ambassador Carmen Moreno and H.E. Dr. Harshana Suriyapperuma, Secretary to the Ministry of Finance, Planning and Economic Development signing the Financing Agreement

H.E. Ambassador Carmen Moreno and H.E. Dr. Harshana Suriyapperuma, Secretary to the Ministry of Finance, Planning and Economic Development exchanging the signed Financing Agreement.