The World Bank Group and the Government of Sri Lanka today (03) launched a new five-year Country Partnership Framework (CPF) to support Sri Lanka’s continued recovery, help achieve its 7% medium-term economic growth target, and support job creation.
“We are committed to building on the continued macroeconomic stability, strengthened governance and revenue-based fiscal consolidation that we have already achieved. Our goal is to confidently steer our economy towards strong, sustainable and inclusive growth. We are working towards an economic growth rate of over 7% in the medium term,” said President of Sri Lanka Anura Kumara Dissanayake. “The World Bank Group has been with us for more than 7 decades. This partnership will further strengthen that relationship.”
Private sector-led job creation is at the heart of the new partnership. Nearly one million young Sri Lankans are expected to enter the job market over the next decade.
Without stronger growth and greater private investment, the economy will create only around 300,000 new formal jobs — leaving roughly 7 out of every 10 young job seekers without access to a quality job, according to a statement issued by the World Bank Group.
“Sri Lanka’s recovery over the past three years has been hard-won and impressive. This new partnership framework is designed to ensure that the benefits reach everyone,” said Johannes Zutt, World Bank Vice President for South Asia. “By pairing public resources with private capital and innovation, we aim to help Sri Lanka create quality jobs, including for women, young people, and communities that have been left behind.”
The partnership will mobilize significant resources from the World Bank Group, including more than $1 billion in direct and mobilized investment over five years by the International Finance Corporation (IFC) and up to $1 billion in low-interest financing over the next three years from the World Bank.
It will deploy the full range of WBG instruments — financing, guarantees, advisory services, and private capital mobilization, the statement said.
“Sri Lanka’s next phase of growth will be driven by a private sector that can compete, innovate, and create jobs for all,” said Sarvesh Suri, IFC Vice President for Asia and the Pacific. “With its strategic location and skilled workforce, Sri Lanka is well-placed to expand its role in the region—and we are committed to supporting the private sector as a catalyst for progress.”
The partnership focuses on four key areas:
- Making it easier to do business. Simplifying government regulations, modernizing trade processes, and bringing more government services online will make Sri Lanka a more attractive place to do business and invest. These reforms will support Sri Lanka’s ambition to double annual export earnings to $36 billion by 2030.
- Stronger infrastructure that benefits everyone. Investments will expand the capacity of the Port of Colombo and attract private operators to help it remain one of Asia’s leading maritime hubs. In the energy sector, a phased program will help Sri Lanka generate 70% of its electricity from renewable sources by 2030, adding 1 gigawatt of new clean power. This aims to lower electricity bills for households and businesses, which are currently among the highest in South Asia.
- More and better jobs in tourism and agriculture. Recognizing that tourism and agriculture are two of Sri Lanka’s greatest assets and offer strong potential to create jobs across the island, the partnership will support Sri Lanka’s Tourism Strategic Plan 2026–2030, as well as connect farmers to new technologies, markets, and financing. The Northern and Eastern Provinces, with remarkable natural and cultural endowments, yet representing less than 10% of the national economy, will receive dedicated investment and advisory support.
- Preparing for future shocks. Following Cyclone Ditwah in November 2025, which caused an estimated $4.1 billion in damages and affected 2.2 million people, the partnership will fund stronger early warning systems and resilient infrastructure to help communities recover faster from future crises and with greater support.
Implementation begins immediately. The World Bank’s Board of Executive Directors has just approved the first major project under this framework: the Regional Empowerment through Vibrant, Inclusive, and Viable Economies (REVIVE) Project — a $100 million investment in the Northern and Eastern Provinces.
REVIVE will boost local economic opportunities in key areas like Jaffna, Pasikuda, Trincomalee and Arugam Bay, spanning the tourism and fisheries sectors that are central to the region’s economic revival; provide targeted support to small businesses, with a particular focus on women entrepreneurs; and is expected to create 3,000 new jobs and benefit around 260,000 people by 2031, the statement said.
The World Bank Group has been working alongside Sri Lanka for more than 70 years. Today, it supports 13 active projects worth over $1.5 billion spanning education, health, energy, transport, agriculture, and social protection. The IFC has committed nearly $1.8 billion in both long- and short-term financing to Sri Lanka’s private sector from 2021-2026, it added.
