The World Bank Group and the Government of Sri Lanka have launched a new five-year Country Partnership Framework (CPF) aimed at supporting the country’s economic recovery, achieving a medium-term growth target of 7%, and creating more jobs through private sector development.
Speaking on the initiative, Anura Kumara Dissanayake emphasized the government’s commitment to maintaining macroeconomic stability, strengthening governance, and advancing fiscal reforms. He noted that the country is working toward sustainable and inclusive economic growth, with the World Bank remaining a long-standing partner in Sri Lanka’s development journey.
A key focus of the partnership is private sector-led job creation. With nearly one million young people expected to enter the workforce over the next decade, current projections suggest that without stronger economic growth and increased private investment, only about 300,000 formal jobs will be created—leaving a significant gap in employment opportunities.
According to Johannes Zutt, Sri Lanka’s economic recovery in recent years has been notable, and the new framework aims to ensure that growth benefits all segments of society. By combining public funding with private capital and innovation, the initiative seeks to generate quality jobs, particularly for women, youth, and underserved communities.
The partnership will mobilize substantial financial resources, including more than $1 billion in investments from the International Finance Corporation over five years, alongside up to $1 billion in concessional financing from the World Bank over the next three years. It will also utilize a range of instruments such as guarantees, advisory services, and private capital mobilization to support development efforts.
Sarvesh Suri highlighted that Sri Lanka’s future growth will depend on a competitive and innovative private sector. He added that the country’s strategic location and skilled workforce position it well to expand its regional economic role.
The CPF focuses on several priority areas, including improving the business environment by simplifying regulations, modernizing trade systems, and digitizing public services to attract investment and support the goal of doubling exports to $36 billion by 2030. It also emphasizes strengthening infrastructure, with plans to expand the capacity of the Port of Colombo and increase renewable energy generation to 70% by 2030 through the addition of 1 gigawatt of clean power, helping to reduce electricity costs.
In addition, the partnership will support job creation in tourism and agriculture by implementing Sri Lanka’s Tourism Strategic Plan 2026–2030 and improving farmers’ access to technology, markets, and finance. Special attention will be given to the Northern and Eastern Provinces, which have significant untapped potential but currently contribute less than 10% to the national economy.
The framework also prioritizes resilience against future shocks. Following the impact of Cyclone Ditwah, which caused widespread damage and affected millions, the initiative will invest in stronger early warning systems and climate-resilient infrastructure to enhance disaster preparedness and recovery.
Implementation has already begun, with the approval of the Regional Empowerment through Vibrant, Inclusive, and Viable Economies (REVIVE) Project—a $100 million investment targeting economic development in areas such as Jaffna, Pasikuda, Trincomalee, and Arugam Bay. The project aims to strengthen sectors like tourism and fisheries, support small businesses with a focus on women entrepreneurs, and create around 3,000 jobs while benefiting approximately 260,000 people by 2031.
The World Bank Group has partnered with Sri Lanka for over 70 years and currently supports 13 active projects worth more than $1.5 billion across sectors including education, health, energy, transport, agriculture, and social protection. The IFC has also committed nearly $1.8 billion in financing to Sri Lanka’s private sector between 2021 and 2026, reinforcing its role in driving economic growth and development.
