The funds will be used for re-settle displaced persons, develop poor areas and establish permanent peace.
The funds of 210 million euros, which will be provided up to 2020, is double the funding during the 2007 to 2013 period, the statement said.
The EU had noted progress in Sri Lanka over the past 21 months, the statement said.
Sri Lanka is also pushing the EU to restore GSP+ concessions to Sri Lanka, which will allow duty free access to exports to the region.