A Memorandum of Understanding (MoU) for implementation of High Impact Community Development Projects (HICDPs) in Sri Lanka through grant assistance from the Government of India was signed and exchanged by High Commissioner of India to Sri Lanka H.E. Santosh Jha and Secretary, Ministry of Finance, Planning and Economic Development Dr. Harshana Suriyapperuma on 11 November 2025, extending the existing framework for another five years.
The HICDP framework has been designed to contribute to the developmental aspirations and needs of Sri Lanka through relatively small but highly impactful developmental initiatives implemented in coordination with the Government of Sri Lanka, while maintaining the funding of large and medium scale developmental projects, as well as special financial assistance packages. The capital cost of a project covered under the HICDP framework is capped at SLR 600 million and the total capital cost of all such projects taken up for implementation at any time is capped at LKR 10 billion. Projects under the framework are entirely based on the requirements of the people and the priorities of the Government of Sri Lanka.
The Governments of India and Sri Lanka first entered into a MoU for implementation of such a framework for a period of five years in June 2005. Noting the high utility of the implemented projects for socio-economic development in Sri Lanka, particularly in the education, health and community development sectors, and based on request from the Government of Sri Lanka, the framework has been extended thrice to date, in 2010, 2015 and 2020. The MoU signed on 11 November is thus the fourth extension of the framework for a period of another five years.
Over 50 HICDPs have successfully been implemented in Sri Lanka until now with Indian grant assistance. Some notable instances include construction of new surgical unit at Teaching Hospital Batticaloa, construction of 115 houses and infrastructure facilities at Ven. Sobitha Nahimigama in Anuradhapura, construction of Mahatma Gandhi Community Centre in Matale, supply of 110 buses to educational institutions across Sri Lanka, renovation of Duraiappah Stadium in Jaffna, upgrading 70 crèches in the estate sector to assist mothers employed in tea estates, construction of buildings of faculties of Engineering and Agriculture at University of Jaffna, Killinochchi campus, construction of buildings for Department of Kandyan Dance at Pallekele under Sri Dalada Maligawa, establishment of Rabindranath Tagore Memorial Auditorium at Ruhuna University, among others.
A total of 21 HICDPs are currently under implementation with a total outlay of over SLR 7 billion. Notable instances include construction of model villages each of 24 houses in every district of the island, establishment of smart classrooms and computer labs in 200 schools in the Southern Province, supply of single cabs for use in police stations in Sri Lanka, among others. Most recently committed projects under the scheme include establishment of 60 smart classrooms in selected schools in plantation areas, rehabilitation of Karainagar boatyard, and construction and supply of medical equipments for Accident and Emergency Unit at District General Hospital, Mannar.
