Sri Lanka and the World Bank Group have launched a new five-year Country Partnership Framework to support economic recovery, boost private investment, and create jobs. The initiative aims to help the country achieve a medium-term growth target of 7% while addressing employment challenges, especially among young people entering the workforce.
President Anura Kumara Dissanayake stated that the government will build on recent economic stability and reforms to ensure sustainable and inclusive growth. He also highlighted the long-standing partnership with the World Bank Group, which spans over 70 years.
World Bank Vice President Johannes Zutt noted that Sri Lanka’s recovery has been significant and that the new framework will ensure benefits reach all segments of society, including women, youth, and underserved communities.
The partnership strongly focuses on private sector-led job creation, as nearly one million young people are expected to enter the labor market over the next decade, while current projections suggest only about 300,000 formal jobs may be created without increased investment.
Under this framework, the World Bank Group plans to mobilize over $1 billion in investments through the International Finance Corporation and provide up to $1 billion in concessional financing over the next few years.
Key priorities include improving the business environment, expanding infrastructure, strengthening tourism and agriculture, and enhancing resilience to future economic shocks. Plans also involve modernizing trade, expanding the Port of Colombo, increasing renewable energy to 70% by 2030, and supporting development in the Northern and Eastern provinces.
The first approved project under this framework is a $100 million program focused on economic development in the Northern and Eastern regions. It is expected to support small businesses, especially women-led enterprises, and create around 3,000 jobs by 2031.
Currently, the World Bank Group is supporting 13 active projects in Sri Lanka worth over $1.5 billion, covering sectors such as education, health, energy, transport, agriculture, and social protection.
