The community development project would be implemented under the Ministry of Nation Building and Estate Infrastructure Development, under the supervision of the president.
"We have got 75 million dollars to implement second stage of community development project," cabinet spokesman and investment minister Anura Priyadarshana Yapa said.
"The funds would be used to improve the livelihoods of rural communities."
The funds are channeled through the international development association (IDA) window of the World Bank, which provides concessional funding.
The phase two of the 12 year development will be implemented in 514 selected areas in the districts of Monaragala, Badulla, Hambantota, Ratnapura, Kegalle, Nuwara Eliya and Polannaruwa.
The cabinet paper said 85 percent of funds would be allocated for intra-village development and inter-village connectivity development activities.
The rest of the funds would be used for public, people and private partnerships,