World Bank Group to boost jobs and private sector growth in SL with $ 1 b support package

World Bank Group President Ajay Banga (left) with President Anura Kumara Disanayake 

• Immediate sectors targeted in three-year package include: energy, agriculture, tourism and regional development
• World Bank Group President Ajay Banga says this is moment of opportunity for Sri Lanka
• Asserts it is time to accelerate reforms and create conditions for private enterprise to thrive, particularly in sectors that can create jobs at scale
• World Bank estimates nearly 1 m young people will enter Sri Lanka’s workforce over next decade, yet only about 300,000 jobs are projected to be created in same period

The World Bank Group yesterday announced a major initiative to support job creation and unlock private sector growth in Sri Lanka, backed by more than $ 1 billion in financing over three years. The package targets sectors with high potential for employment and investment—energy, agriculture, tourism, and regional development.

The initiative aims to expand economic opportunity, strengthen local industry, and attract private capital to support long-term growth. 

It was announced after a meeting in Sri Lanka between President Anura Kumara Disanayake and World Bank Group President Ajay Banga—marking the first visit by a Bank President in two decades and signalling a renewed commitment to the country’s economic recovery and future.

“This support from the World Bank Group is an investment in the people of Sri Lanka,” said President Disanayake. “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.”

Banga highlighted the importance of acting now to build on Sri Lanka’s progress. 

“This is a moment of opportunity for Sri Lanka,” he said. “With progress underway to stabilise 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.”

The World Bank estimates that nearly 1 million young people will enter Sri Lanka’s workforce over the next decade, yet only about 300,000 jobs are projected to be created over the same period. 

The new financing directly targets this gap—mobilising public and private investment to create more and better jobs. The immediate sectors targeted in the $ 1 billion package include:

• Energy ($ 185 million): Supporting new solar and wind generation equivalent to 1 gigawatt of capacity, aimed at lowering electricity costs for families and businesses. The project is expected to mobilise over $ 800 million in private investment and includes $ 40 million in guarantees.
• Agriculture ($ 100 million): Helping farmers and agribusinesses adopt new technologies, access markets, and attract private capital. The program will benefit more than 380,000 people—including 8,000 agri-food producers—and is expected to leverage $ 17 million in private financing.
• Tourism ($ 200 million): Expanding the sector by protecting natural and cultural assets, creating jobs, and ensuring benefits flow to local communities.
• Regional Development ($ 200 million): Investing in infrastructure, local industries, and job creation in historically underserved areas—including the Northern and Eastern Provinces.

This integrated approach—bringing together the World Bank’s financing, knowledge, and private sector tools—is a concrete example of the institution’s unique ability to support economic growth and job creation at every stage. It reflects the Bank’s focus on supporting job-generating sectors and enabling private investment.

The World Bank Group has been a trusted partner to Sri Lanka for more than 70 years, with current investments exceeding $ 2.2 billion. Yesterday’s announcement deepens that partnership—focused on enabling opportunity, expanding private sector growth, and supporting the country’s path to a more resilient and inclusive economy.