Assessment of Credit Lines and Agri Finance Supply to Inform Cold Chain Financing

Thematic Area: Macro, Trade & Competitiveness

Start Date: August 05, 2026

Cold chain development in Sri Lanka is widely recognised as a critical enabler for reducing postharvest losses, improving food safety, and strengthening the competitiveness of domestic and export‑oriented agri‑food value chains. Despite clear demand drivers across fisheries, meat, dairy, and selected fruit and vegetable segments, investment in cold chain infrastructure has remained limited. A central constraint is the financing landscape, which is currently ill‑suited to the capital‑intensive, long‑tenor, and energy‑dependent nature of cold chain assets. Small and medium-sized enterprises (SMEs) and other value-chain actors face high borrowing costs, stringent collateral requirements, short loan tenors, and grace periods, while development financing can involve lengthy approval processes and foreign-exchange risks. Although several government-supported agricultural and SME financing schemes are available, they are generally not tailored to the specific financing and operational characteristics of cold chain investments. There is therefore a strong case for dedicated concessional financing, credit guarantees, and energy-efficient solutions, including solar-powered cooling, to improve the commercial viability and bankability of cold chain investments.