Sri Lanka is experiencing its worst economic crisis since its independence in 1948, with foreign currency reserves at a record low. In April 2022, repayment of foreign debt was suspended and import restrictions were imposed to manage the forex crisis, which exacerbated shortages in fuel, gas, food, and medicine and led to an increase in the cost of living by 30-40%. The aftermath of the crisis has significantly impacted food security as approximately 6.3 million Sri Lankans1 – out of a population of 22 million – are food insecure and are struggling with record-high food price inflation of more than 90%.2 Both energy and food insecurity have exposed the population to social insecurity. In addition, women are disproportionately impacted by this crisis and the women- led micro enterprises and small-hold agriculture initiatives were largely affected by the crisis without any alternative income generation activity offered to them.

In response, UNDP, with the technical and financial assistance of the Government of Japan, is planning to provide immediate crisis relief support through the diversification of livelihoods and the introduction of entrepreneurship programmes, especially targeting women-led MSMEs, to secure sustainable income. Further to the provisions to access innovative markets, agriculture sector value and supply chain improvement interventions will be introduced under the Japanese Supplementary Budget (JSB) assistance, to enhance family nutrition/ food security. A total of 8,000 women of smallholder farmer families will be supported directly and 32,000 vulnerable community members will benefit directly in the Dry Zone districts of Mannar, Kilinochchi, Mullaitivu, Trincomalee, Vavuniya, Anuradhapura, & Polonnaruwa. In the selection of small holder farmer families, female headed households will be given priority.

PALM is joining hand in Vavuniya and Mannar districts since June 2023, with the UNDP under the funding of Japanese Supplementary Budget (JSB) and working together with the Government of Sri Lanka and relevant stakeholders, the intervention aims to achieve its objectives through two projects; the first focusing on diversifying livelihoods and introduce entrepreneurship programme, targeting women-led MSMEs. The second aims to strengthen energy and food security, through the revival of the rural agricultural economy by providing access to innovative markets, value and supply chain improvements along with the adoption of modern, green agricultural technologies which will increase productivity and efficiency