Colombo, Sri Lanka—Farmers in Sri Lanka’s North Central Province will soon gain access to affordable solar-powered irrigation systems through a new initiative launched by the Our Movement of Lanka (OML) and Pan Asia Bank, with support from the Climate Vulnerable Forum and V20 Finance Ministers (CVF-V20) Secretariat.
The program, through Pan Asia Bank’s financing facility, will allow farmers to acquire relocatable solar water-pump systems to be deployed by OML through a four-year seasonal financing plan that aligns loan repayments with agricultural harvest cycles.
The pilot phase will deliver 100 solar irrigation systems, each valued at LKR 500,000 (USD 1,588). Farmers will contribute LKR 100,000 USD 317 (20%), while Pan Asia Bank will finance the remaining LKR 400,000 USD 1270. The total project value is LKR 50 million (approximately USD 158,500), consisting of LKR 10 million (USD 31,750) in farmer contributions and LKR 40 million USD 127,000 in bank financing.
“By combining affordable financing with reliable solar irrigation, OML and Pan Asia are helping farmers reduce costs, boost productivity, and secure stable incomes, all while investing in a sustainable future,” Sara Jane Ahmed, Managing Director and Finance Advisor of the CVF-V20 Secretariat, said.
Beyond individual farm benefits, the project supports the implementation of the Sri Lanka Climate Prosperity Plan (CPP), the nation’s official Long-Term Strategy under the UNFCCC. The CPP initiative is mobilized by the CVF-V20 to position climate-vulnerable nations as investment hubs for the future while building prosperity and climate resilience.
The solar irrigation systems are designed to replace diesel and other fossil-fuel-powered pumps widely used by farmers. By eliminating fuel costs and reducing greenhouse gas emissions, the systems will provide a more reliable and sustainable irrigation solution. Improved irrigation reliability is expected to strengthen water management, stabilize crop yields, and increase farm productivity and incomes.
The pilot project will serve as a proof of concept for a larger national rollout. The OML aims to expand the model to 15,000 farmers nationwide, increasing access to clean irrigation technology and strengthening climate resilience across Sri Lanka’s agricultural sector.
The initiative includes multiple safeguards to protect farmers, lenders, and project partners while ensuring long-term sustainability.
Farmers will participate in groups of ten, jointly guaranteeing repayments and reinforcing peer accountability. Land ownership and water access will be verified through the Grama Niladhari and Divisional Secretariat offices, while collateral is released only after full repayment, backed by a corporate guarantee from OML. The solar pump systems are relocatable if necessary, and Divisional Secretariat-level coordinators will oversee monitoring, coordination, and collections.
Beyond improving agricultural productivity, the initiative is expected to support local employment through system installation, technical maintenance, and after-sales services. It will also strengthen long-term engagement between farmers and agricultural service providers.
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The CVF-V20 represents 74 member countries from small island developing states (SIDS), least developed countries (LDCs), low to middle-income countries (LMICs), landlocked developing countries (LLDCs), and fragile and conflict-affected states (FCS). Working together, the CVF-V20 aims to achieve climate justice through the realization of Climate Prosperity Plans, which contain ambitious economic and financial resilience strategies designed to attract investment and resources that advance the attainment of the Sustainable Development Goals (SDGs), 30×30 Global Biodiversity, and help keep the average global temperatures to the Paris Agreement’s 1.5°C safety threshold.
Africa: Benin, Burkina Faso, Cabo Verde, Chad, Comoros, Côte d’Ivoire, Democratic Republic of the Congo, Eswatini, Ethiopia, Gabon, The Gambia, Ghana (Troika), Guinea, Kenya, Liberia, Madagascar, Malawi, Morocco, Mozambique, Namibia, Niger, Rwanda, Senegal, Sierra Leone, Somalia, South Sudan, Sudan, Tanzania, Togo, Tunisia, Uganda
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