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WB President’s visit unlocks US $ 1bn support package for SL
• Financing to be rolled out over three years
• Aims to support job creation and unlock private sector growth in Sri Lanka
• Targets sectors with high potential for employment and investment such as energy, agriculture, tourism and regional development
Sri Lanka is set to gain renewed momentum going forward with the World Bank (WB) announcing it will back the island nation with a support package in excess of US $ 1 billion.
The agency will roll out the financing over three years, in a major initiative to support job creation and unlock private sector growth in Sri Lanka. The package targets sectors with high potential for employment and investment such as energy, agriculture, tourism and regional development and aims to expand economic opportunity, strengthen local industry and attract private capital to support long-term growth.
The announcement was made shortly after WB Group President Ajay Banga met with President Anura Kumara Dissanayake in Colombo yesterday.
Banga’s visit is the first by a WB President in two decades and signals a renewed commitment to the country’s economic recovery and future.
“This is a moment of opportunity for Sri Lanka. With progress underway to stabilise 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,” said Banga, who was in the country for less than 24 hours before he took off to India.
According to Dissanayake, the freshly announced support from the WB Group is an investment in the people of Sri Lanka.
“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,” he said.
The WB 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.
The new financing directly targets this gap, mobilising public and private investment to create more and better jobs. The immediate sectors targeted in the US $ 1 billion package includes:
Energy (US $ 185 million): Supporting new solar and wind generation equivalent to one gigawatt of capacity, aimed at lowering electricity costs for families and businesses. The project is expected to mobilise over US $ 800 million in private investment and includes US $ 40 million in guarantees.
Agriculture is allocated US $ 100 million, essentially to help farmers and agribusinesses adopt new technologies, access markets and attract private capital. The programme will benefit more than 380,000 people, including 8,000 agri-food producers and is expected to leverage US $ 17 million in private financing.
With US $ 200 million for tourism, the aim is to expand the sector by protecting natural and cultural assets, creating jobs and ensuring benefits flow to local communities.
Regional development is allocated US $ 200 million for investing in infrastructure, local industries and job creation in historically underserved areas—including the Northern and Eastern provinces.
The WB Group has been a trusted partner to Sri Lanka for more than 70 years, with current investments exceeding US $ 2.2 billion.
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