Lumbini Set for Major Changes as World Bank Approves $85 Million Project

Bijeta Bhandari/Deepak Ghimire

The sacred birthplace of Gautam Buddha in Lumbini is set for a major transformation after the World Bank approved an $85 million funding package for the Greater Lumbini Area Development Project.

Approved on March 13, 2026, during a board meeting in Washington, D.C., the five-year initiative aims to combine heritage preservation with sustainable economic growth, positioning Lumbini as a leading global destination for spiritual tourism.

The project goes beyond the core UNESCO World Heritage Site, extending to key locations linked to Buddha’s life. These include Tilaurakot, believed to be his childhood home, Ramgram, home to sacred relics, and Devdaha, associated with Buddha’s maternal lineage.

Plans focus on improving infrastructure and visitor experience, including better sanitation, designated prayer spaces, shoe storage facilities, and beautification of the Mayadevi Temple complex.

Local governments such as Lumbini Cultural Municipality and Kapilvastu will play a key role in implementation, ensuring surrounding communities benefit from the development.

Of the total funding, $45 million is earmarked specifically for core areas within Greater Lumbini that have historically seen limited investment.

Officials and tourism stakeholders say the project could be a turning point for boosting local livelihoods while transforming the region into a major international hub for pilgrimage and cultural tourism.