The World Bank Group today announced a major initiative to support job creation and unlock private sector growth in Sri Lanka, backed by more than $1 billion in financing over three years.The package targets sectors with high potential for employment and investmentenergy, agriculture, tourism, and regional development.The initiative aims to expand economic opportunity, strengthen local industry, and attract private capital to support long-term growth.
It was announced after a meeting in Sri Lanka between President Anura Kumara Dissanayake and World Bank Group President Ajay Bangamarking the first visit by a Bank President in two decades and signaling a renewed commitment to the countrys economic recovery and future.This support from the World Bank Group is an investment in the people of Sri Lanka, said President of Sri Lanka Anura Kumara Dissanayake.
It will help create jobs, support small businesses, and open up new opportunities across the country.
We are committed to ensuring this partnership delivers real change for our communities.World Bank Group President Ajay Banga highlighted the importance of acting now to build on Sri Lankas progress.This is a moment of opportunity for Sri Lanka, said World Bank Group President Ajay Banga.
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 the conditions for private enterprise to thriveparticularly in sectors that can create jobs at scale.The World Bank estimates that nearly one million young people will enter Sri Lankas workforce over the next decade, yet only about 300,000 jobs are projected to be created over the same period.The new financing directly targets this gapmobilizing public and private investment to create more and better jobs.
The immediate sectors targeted in the $1 billion package includes:Energy ($185 million): Supporting new solar and wind generation equivalent to 1 gigawatt of capacity, aimed at lowering electricity costs for families and businesses.
The project is expected to mobilize over $800 million in private investment and includes $40 million in guarantees.Agriculture ($100 million): Helping farmers and agribusinesses adopt new technologies, access markets, and attract private capital.
The program will benefit more than 380,000 peopleincluding 8,000 agri-food producersand is expected to leverage $17 million in private financing.Tourism ($200 million): Expanding the sector by protecting natural and cultural assets, creating jobs, and ensuring benefits flow to local communities.Regional Development ($200 million): Investing in infrastructure, local industries, and job creation in historically underserved areasincluding the Northern and Eastern Provinces.This integrated approachbringing together the World Banks financing, knowledge, and private sector toolsis a concrete example of the institutions unique ability to support economic growth and job creation at every stage.
It reflects the Banks focus on supporting job-generating sectors and enabling private investment.The World Bank Group has been a trusted partner to Sri Lanka for more than 70 years, with current investments exceeding $2.2 billion.
Todays announcement deepens that partnershipfocused on enabling opportunity, expanding private sector growth, and supporting the countrys path to a more resilient and inclusive economy.