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International Partnerships

Sri Lanka

Sri Lanka, a diverse nation characterised by its multi-ethnic and multi-religious society, stands as a lower middle-income country in South Asia, strategically positioned in the Indian Ocean and home to 21 million people. The country is gradually emerging from its most severe economic downturn, marked by a historic debt default. In March 2023, the International Monetary Fund (IMF) endorsed a USD 3 billion Extended Fund Facility (EFF) spanning four years, aimed at bolstering Sri Lanka's economic policies and reform initiatives. This financial support is expected to act as a catalyst for attracting additional external funding.

Our partnership

Aligned with the EU’s Strategy for Cooperation in the Indo-Pacific and the Sustainable Development Goals (SDGs), the European Union has established a Multiannual Indicative Programme for 2021-2027, focusing on two key priority areas: 'Green Recovery' and 'Inclusive and Peaceful Society'. Within this strategic framework, the EU has allocated €60 million in grant funding to its partnership with Sri Lanka for the period 2021-2024.

The implementation of the green recovery initiative is a collaborative effort with EU Member States present in Sri Lanka, including Germany, France, and the Netherlands, leveraging a unified Team Europe approach. Additionally, priorities linked to the Global Gateway Strategy are also being explored in the country.

8 MARCH 2022
Multiannual Indicative Programme 2021-2027 for Sri Lanka - decision
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8 MARCH 2022
Multiannual Indicative Programme 2021-2027 for Sri Lanka - annex
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7 DECEMBER 2022
Annual action plan 2022 for Sri Lanka
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(864.56 KB - ZIP)
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16 DECEMBER 2021
Annual action plan 2021 for Sri Lanka
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(1.4 MB - ZIP)
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Our flagship initiatives

Green recovery

Sri Lanka's Team Europe Initiative, in collaboration with Germany, France, and the Netherlands, is committed to fostering a transition towards a more low-carbon, resource-efficient, and circular economy model. This initiative places a strong emphasis on biodiversity protection and the promotion of green, inclusive employment opportunities. Key components of this initiative include:

  • Green policy dialogue: This component strengthens multi-stakeholder dialogue, facilitates policy advocacy, and promotes the external objectives and policies of the European Green Deal.
  • Circular economy in the food sector: By introducing circular principles within the food value chain, this approach focuses on the recovery and recycling of food surplus and waste by-products, reintegrating them into the value chain.
  • Value chains: This aspect aims to support small-holder farmers in developing diverse value chains that include organic fruits, vegetables, tea, spices, nuts, coconuts, and herbs.
  • Waste management: Efforts in this area are directed towards reducing marine litter through the prevention of waste leakage from land-based sources.
  • Public financial management: This component is geared towards improving the efficiency, transparency, and accountability of public resource usage, contributing to fiscal sustainability.
An inclusive and peaceful society

The initiative for an inclusive and peaceful society aims to bolster socio-economic inclusion and foster partnerships, prioritising support for the most disadvantaged, marginalised, and religiously diverse communities in Sri Lanka. Actions in this area are dedicated to enhancing social cohesion, mitigating intercommunal tensions, and addressing disparities related to geography, economy, and gender. This initiative is centered on several key areas: 

  • Justice: Contributing to a more independent judiciary and an improved and responsive justice system in Sri Lanka.
  • Dialogue: Supporting dispute resolution. 
  • Capacity building: Strengthening institutional frameworks and creating opportunities for social harmony across different communities.