World Bank commits USD 200 million for key projects in Sri Lanka

The World Bank has reaffirmed its support for poverty reduction, digital development, and the Clean Sri Lanka initiative, with plans to finance three major projects over the next three months, totaling USD 200 million.

World Bank Vice President for South Asia, Martin Raiser, concluded a 2-day visit to Sri Lanka today, where he met with President Anura Kumara Dissanayake, Prime Minister Harini Amarasuriya and other government officials, private investors, and development partners to discuss the country’s ongoing efforts towards economic recovery and long-term growth.

Raiser was grateful for the opportunity to meet the new government and understand their development priorities for Sri Lanka. He was also encouraged by discussions with private sector stakeholders about potential opportunities to foster growth and job creation, says the World Bank.

Key areas of focus during the visit included the government’s commitment to poverty reduction, digital development, and the Clean Sri Lanka initiative. The World Bank reaffirmed its support in these areas, with plans to finance three key projects over the next three months totaling $200 million. These projects will support rural development and education and will establish a facility to attract private investment in renewable energy.

“The World Bank is committed to supporting Sri Lanka’s development agenda, particularly in the areas of poverty reduction, digital transformation, and sustainability,” said Martin Raiser. “We look forward to  financing projects that will have a direct impact on improving the livelihoods of the Sri Lankan people.”

Raiser and the Sri Lankan authorities also discussed priorities for World Bank support over the medium-term, including enhancing the tourism sector; supporting the development of lagging regions—especially in the North; promoting the logistics sector as a driver of growth; improving service delivery, and ensuring the workforce is equipped with the skills required by a rapidly evolving labor market, the statement said.

Raiser emphasized the importance of maintaining macroeconomic stability, improving governance and attracting private sector investment as critical factors for boosting incomes and creating jobs.

“Sri Lanka’s growth prospects depend on the mobilization of additional private sector investment, including foreign direct investment. Ample opportunities exist in the digital economy, tourism, logistics, agricultural value chains, and renewable energy, but realizing this potential will require further improvements in the business climate,” Raiser added.

The World Bank’s program in Sri Lanka for the coming years will be summarized in the upcoming mid-term review of the World Bank Group’s Country Partnership Framework (CPF) for Sri Lanka. The updated CPF, scheduled to be finalized within the next six months, will build on the government’s key priorities and serve as a roadmap for continued collaboration between Sri Lanka and the World Bank Group, it added.

Raiser concluded his visit by reiterating the World Bank’s readiness to offer comprehensive support for Sri Lanka as the country transitions from recovery to sustained, inclusive economic growth by bringing together the public and private sector arms of the World Bank Group.