ECONOMYEXT – Washington-based World Bank had announced a billion US dollars in financing to help Sri Lanka’s recovery after a visit by its chief Ajay Banga to the island, which is recovering from a currency crisis which ended in external default.
The package targets sectors with high potential for employment and investment in energy, agriculture, tourism, and regional development, over three years.
“This is a moment of opportunity for Sri Lanka,” World Bank Group chief Ajay Banga said in a statement after meeting Sri Lanka President Anura Kumara Disssanayake in Colombo.
“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 thrive – particularly in sectors that can create jobs at scale.”
The World Bank estimates that nearly one million young people will enter Sri Lanka’s workforce over the next decade, yet only about 300,000 jobs are projected to be created over the same period.
“This support from the World Bank Group is an investment in the people of Sri Lanka,” the statement quoted President Dissanayake as saying.
“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.”
About 185 million dollars, including 4 million dollars in guarantees will go to support solar and wind energy. The project is expected to mobilize 800 million US dollars in private financing.
A 100 million dollars will go to help farmers and agribusinesses adopt new technologies, access markets, and attract private capital.
The program will benefit more than 380,000 people, including 8,000 agri-food producers, and will help leverage 17 million dollars in private financing.
Tourism will get 200 million dollars to protected natural and cultural assets and creating jobs.
Another 200 million will go to regional infrastructure, local industries, which will help create jobs historically underserved areas, including the Northern and Eastern Provinces. (Colombo/May07/2025)