As global oil prices threaten to push energy costs higher, Sri Lanka partners with the World Bank to improve childcare—a strategic move to empower women and drive economic resilience.
While global markets eye a potential increase in energy costs—with Brent crude possibly reaching $85 a barrel—Sri Lanka is quietly making a transformative investment of a different kind: childcare. In a new partnership with the World Bank Group, the country is taking concrete steps to design a national policy framework aimed at strengthening its child day care system.
The initiative is being led by the Ministry of Women and Child Affairs, with technical support from the World Bank and its private sector arm, the International Finance Corporation (IFC). The program is backed by the IFC’s Facility for Investment Climate Advisory Services (FIAS) and will also bring in collaboration from the International Labour Organization (ILO) through a multi-stakeholder childcare consortium.
“Childcare is one of the smartest investments we can make in Sri Lanka’s future,” said Gevorg Sargsyan, the World Bank Group’s Country Manager for Sri Lanka. “It delivers a triple dividend—creating opportunities for women in the workforce, supporting early childhood development, and driving job creation and economic growth.”
The urgency is clear. A 2013 assessment of day care centers in Colombo found that 25% were rated as poor quality, with only 6% meeting a “good” standard. Staffing issues were widespread, including high child-to-teacher ratios and lack of trained caregivers. More recently, a 2023 study in Kandy revealed that 77.5% of preschool centers ranked only “minimal” in quality, while just 7.5% scored “good.” Better outcomes were tied to smaller groups, higher fees, and graduate-level training among staff.
Challenges such as the high cost of operation, inadequate training, insufficient infrastructure, and poor policy enforcement continue to hinder the development of high-quality childcare across the island.
Yet, the government’s renewed focus—despite rising energy costs and economic headwinds—signals a recognition that investing in early childhood care is not just social policy, but smart economics. Empowering women to join the workforce more fully, while ensuring the healthy development of future generations, may offer a longer-term payoff that outlasts fluctuations in global oil markets.
In an economy vulnerable to global shocks, particularly in energy, the move highlights a pivot toward structural reforms that build internal resilience. By addressing both social and economic levers, Sri Lanka is betting on childcare as a key to sustainable national growth.