Sri Lanka and the World Bank Group have launched a new five-year Country Partnership Framework to support the country’s economic recovery, target 7% medium-term growth, and drive private-sector job creation, as outlined in a World Bank press release. The partnership will mobilize more than $1 billion in IFC investment and up to $1 billion in low-interest World Bank financing over the coming years. With nearly one million young Sri Lankans entering the job market over the next decade, the stakes are high — without stronger growth, only 3 in 10 young job seekers could access quality formal employment.
Sri Lankan President Anura Kumara Dissanayake welcomed the framework as a continuation of a 70-year partnership, stressing the government’s commitment to sustainable, inclusive growth. World Bank South Asia Vice President Johannes Zutt said the framework pairs public resources with private capital to create quality jobs for women, youth, and communities left behind. IFC Vice President Sarvesh Suri pointed to Sri Lanka’s strategic location and skilled workforce as assets that make it well-placed to expand its regional role.
The partnership targets four areas: simplifying regulations and modernizing trade to double export earnings to $36 billion by 2030; expanding the Port of Colombo and scaling renewable energy to 70% of electricity by 2030 to cut some of South Asia’s highest power bills; boosting tourism and agriculture with dedicated support for the Northern and Eastern Provinces; and strengthening disaster resilience after Cyclone Ditwah in November 2025 caused $4.1 billion in damages and affected 2.2 million people.
Implementation kicks off immediately with the $100 million REVIVE Project in the Northern and Eastern Provinces, targeting tourism and fisheries hubs in Jaffna, Pasikuda, Trincomalee, and Arugam Bay. The project prioritizes women entrepreneurs and small businesses, with 3,000 jobs and 260,000 beneficiaries expected by 2031. The World Bank Group currently supports 13 active projects in Sri Lanka worth over $1.5 billion, while IFC has committed nearly $1.8 billion to the private sector since 2021.
