The International Fund for Agricultural Development (IFAD), a specialized financial institution of the United Nations, will grant a US$ 22.2 million loan to Sri Lanka to improve irrigation infrastructure and crop diversification, and help create new market opportunities for smallholder farmers in Northern Province, a statement released by the Fund said.

Sri Lanka's Ambassador to Italy Asitha Perera and President of IFAD Kanayo F. Nwanze signed the loan agreement Monday at the IFAD headquarters in Rome for the Iranamadu Irrigation Development Project.