In a significant move to bolster Sri Lanka’s economic recovery, the World Bank has announced a $1 billion support package aimed at job creation and private sector growth over the next three years. The initiative focuses on key industries such as energy, agriculture, tourism, and regional development, sectors deemed critical for long-term stability and expansion.
The announcement followed a meeting in Colombo between Sri Lankan President Anura Kumara Dissanayake and World Bank President Ajay Banga, marking the first visit by a World Bank President to Sri Lanka in two decades.
Addressing Employment Challenges
Sri Lanka faces a pressing employment gap, with nearly one million young people expected to enter the workforce in the next decade, while only 300,000 jobs are projected to be created. The World Bank’s funding aims to bridge this gap by mobilizing private capital, supporting renewable energy, modernizing agriculture, and promoting tourism and regional development.
Key Investment Areas
The $1 billion package will be strategically allocated across several sectors:
- Energy ($185 million) – Supporting new solar and wind generation, expected to mobilize $800 million in private investment.
- Agriculture ($100 million) – Helping farmers adopt modern technologies and access new markets, benefiting 380,000 people.
- Tourism ($200 million) – Expanding the sector while preserving natural and cultural assets.
- Regional Development ($200 million) – Investing in infrastructure and local industries, particularly in historically underserved areas.
A Renewed Commitment
“This support from the World Bank Group is an investment in the people of Sri Lanka,” said President Anura Kumara Dissanayake, emphasizing the initiative’s role in creating jobs, supporting small businesses, and fostering economic opportunity.
World Bank President Ajay Banga echoed this sentiment, stating, “With progress underway to stabilize the economy and restart growth, core elements for job creation are in place. Now is the time to accelerate reforms and create conditions for private enterprise to thrive”.
As Sri Lanka continues its economic recovery, this $1 billion initiative signals a renewed global commitment to fostering sustainable development and long-term prosperity for the nation.
World Bank building at Washington Picture by Dr Junge
