Sri Lanka Gets $1 Billion Support Package From World Bank

COLOMBO (News 1st); The World Bank Group announced a $1 billion financing package aimed at creating jobs and unlocking private sector growth over the next three years, for Sri Lanka.

The initiative targets high-potential sectors including energy, agriculture, tourism, and regional development.

The announcement followed a high-level meeting in Colombo between Sri Lankan President Anura Kumara Dissanayake and World Bank Group President Ajay Banga—marking the first visit by a World Bank President to the country in two decades.

“This support from the World Bank Group is an investment in the people of Sri Lanka,” said President Dissanayake, according to a statement from the World Bank. “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.”

President Banga emphasized the urgency of leveraging this moment to accelerate reforms and attract private capital.

“This is a moment of opportunity for Sri Lanka,” Banga said. “With progress underway to stabilize the economy and restart growth, core elements for job creation are in place. Now is the time to create the conditions for private enterprise to thrive—particularly in sectors that can create jobs at scale.”

The World Bank estimates that nearly one million young people will enter Sri Lanka’s workforce over the next decade, yet only 300,000 jobs are projected to be created under current trends. The new initiative aims to close this gap by mobilizing both public and private investment.

Key components of the package include:

Energy ($185 million): Supporting 1 GW of new solar and wind capacity to reduce electricity costs and attract over $800 million in private investment. Includes $40 million in guarantees.

Agriculture ($100 million): Enabling 380,000+ farmers and agribusinesses to adopt modern technologies and access markets, with $17 million in expected private financing.

Tourism ($200 million): Enhancing natural and cultural assets to boost tourism and create community-based jobs.

Regional Development ($200 million): Investing in infrastructure and industries in underserved areas, including the Northern and Eastern Provinces.

This integrated approach combines financing, technical expertise, and private sector tools to drive inclusive growth and resilience.

The World Bank Group has been a development partner to Sri Lanka for over 70 years, with current investments exceeding $2.2 billion.

This new initiative deepens that partnership, focusing on job creation, private sector expansion, and inclusive economic transformation.