ASIATODAY.ID, COLOMBO – The World Bank Group has announced a landmark $1 billion support package to drive job creation and accelerate private sector growth in Sri Lanka over the next three years. The comprehensive initiative focuses on high-potential sectors including energy, agriculture, tourism, and regional development, aiming to unlock new economic opportunities nationwide.
This strategic program is designed to strengthen local industries, attract private investment, and lay the foundation for long-term sustainable growth. The announcement followed high-level talks in Colombo between Sri Lankan President Anura Kumara Dissanayake and World Bank Group President Ajay Banga—marking the first official visit by a World Bank President to Sri Lanka in two decades. The visit signals renewed global confidence in Sri Lanka’s ongoing economic recovery.
“This partnership with the World Bank Group is an investment in the future of Sri Lanka,” said President Anura Kumara Dissanayake, May 7, 2025.
“It will generate thousands of jobs, support small businesses, and open new economic avenues across the country. Our government is fully committed to making this collaboration deliver tangible benefits for our people.”
World Bank Group President Ajay Banga emphasized that the time is right to accelerate reforms and catalyze private enterprise.
“Sri Lanka stands at a pivotal moment,” Banga stated. “With economic stabilization underway, the foundations for robust job creation are in place. Now is the time to push forward reforms and foster conditions where private businesses can flourish—especially in sectors with large-scale employment potential.”
According to World Bank projections, approximately one million young Sri Lankans will enter the workforce in the next decade. However, current forecasts suggest only 300,000 jobs may be created during the same period—highlighting a significant employment gap the new financing aims to bridge.
The $1 billion package will channel targeted investments into the following key sectors:
- Energy ($185 million): Accelerating the transition to renewable energy by supporting 1 gigawatt of new solar and wind capacity. The project aims to reduce electricity costs for households and businesses, while attracting over $800 million in private investment and includes $40 million in guarantees.
- Agriculture ($100 million): Empowering over 380,000 beneficiaries—including 8,000 agri-food producers—by promoting modern farming technologies, improving market access, and unlocking $17 million in private financing to boost productivity and resilience.
- Tourism ($200 million): Strengthening tourism infrastructure and safeguarding natural and cultural assets to create jobs and stimulate sustainable, community-driven economic benefits.
- Regional Development ($200 million): Enhancing infrastructure, supporting local industries, and fostering job creation in historically underserved regions such as the Northern and Eastern Provinces.
This integrated approach leverages the World Bank Group’s financing, expertise, and private sector instruments, reinforcing its unique capacity to support inclusive economic growth at every level. It also aligns with the Bank’s core mission to stimulate job-generating sectors and encourage private sector-led development.
The World Bank Group has maintained a trusted partnership with Sri Lanka for over 70 years, with current investments exceeding $2.2 billion. Today’s announcement deepens that commitment—focused on expanding opportunities, driving private sector growth, and supporting Sri Lanka’s path to a resilient, inclusive economy. (AT Network)
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