The agriculture sector will receive $100 million to modernise farming practices, enhance market access, and attract investment. The program will benefit over 380,000 people, including 8,000 agri-food producers, and is projected to draw an additional $17 million in private capital.
In a significant boost to Sri Lanka’s ongoing economic recovery, the World Bank Group has announced a $1 billion support package aimed at creating jobs and stimulating private sector growth over the next three years. The initiative, revealed during the first visit by a World Bank President to the island in two decades, underscores a renewed international commitment to the country’s development path following its recent economic crisis.
The package targets four key sectors – energy, agriculture, tourism, and regional development – that are expected to generate substantial employment opportunities and attract private investment. World Bank Group President Ajay Banga, who met with Sri Lankan President Anura Kumara Dissanayake in Colombo, emphasized that this is a “moment of opportunity” for the country as it emerges from crisis and begins rebuilding.
“With progress underway to stabilize the economy and restart growth, core elements for job creation are in place,” said Banga. “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.”
President Dissanayake welcomed the initiative as a crucial 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.
“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.”
Focus on Job Creation
According to World Bank estimates, nearly one million young people will enter the Sri Lankan workforce over the next decade. However, projections suggest only about 300,000 jobs will be created during that period, leaving a significant employment gap. The new financing package is designed to close this gap by mobilizing both public and private investment to create more – and better – jobs.
The integrated approach combines the World Bank’s financing, technical expertise, and private sector tools, aiming to strengthen local industry and expand economic opportunity.
“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.”
Sector-Specific Investments
A significant portion of the funding will be channelled into energy infrastructure, with $185 million allocated to support the development of solar and wind power projects totalling 1 gigawatt of capacity. This move is expected to reduce electricity costs for households and businesses, while also unlocking over $800 million in private sector financing, supported by $40 million in guarantees.
The agriculture sector will receive $100 million to modernise farming practices, enhance market access, and attract investment. The program will benefit over 380,000 people, including 8,000 agri-food producers, and is projected to draw an additional $17 million in private capital.
A 100 million dollars will go to help farmers and agribusinesses adopt new technologies, access markets, and attract private capital.
Tourism, one of Sri Lanka’s key economic drivers, is set to receive $200 million. These funds will be used to protect and enhance natural and cultural heritage sites, create employment opportunities, and ensure local communities benefit directly from tourism revenues.
Another $200 million will be invested in regional development, targeting historically underserved areas such as the Northern and Eastern Provinces. These funds will go toward infrastructure projects and local industry support aimed at fostering inclusive growth and job creation.
Long-Standing Partnership
The World Bank Group has been a development partner to Sri Lanka for over 70 years, with current investments in the country exceeding $2.2 billion. The newly announced package builds on that relationship and marks a shift towards more targeted support that leverages private capital and knowledge-sharing to achieve sustainable outcomes.
This initiative comes as Sri Lanka continues its recovery from a devastating currency crisis that led to a sovereign default. The crisis exposed deep structural vulnerabilities in the country’s economy, and the government has since been working to implement reforms and stabilise macroeconomic conditions.
The visit by World Bank President Banga and the announcement of such a substantial package signal international confidence in Sri Lanka’s recovery trajectory. Analysts see the move as a positive step not only for job creation but also for restoring investor confidence and fostering broader economic resilience.
“This package is not just about money – it’s about momentum,” said a senior World Bank official familiar with the program. “It’s about building a pathway to prosperity through investment, innovation, and inclusion.”
