World Bank, Sri Lanka launch $2bn country partnership framework as the country seeks to accelerate economic recovery, create jobs, and attract greater private investment following its recent financial crisis. The five-year strategy aims to support sustainable growth while addressing structural challenges in the labor market.
World Bank, Sri Lanka launch $2bn country partnership framework to boost jobs and growth
The World Bank Group has unveiled its Country Partnership Framework (CPF) for Sri Lanka covering the period from 2026 to 2030, committing approximately US$2 billion in financing to support both public and private sector development. The initiative is expected to play a significant role in advancing private sector-led growth and helping the country generate more quality employment opportunities for its growing workforce.
Speaking at the launch event in Colombo, World Bank Country Manager for Sri Lanka, Gevorg Sargsyan, said the financing package would be complemented by efforts to mobilize more than US$1.2 billion in private capital. According to the World Bank, the combined investment strategy is designed to help Sri Lanka achieve a 7 percent economic growth rate while facilitating the entry of one million young people into the workforce over the next decade.
The framework was officially launched during an event titled “Sri Lanka’s Next Chapter: Jobs, Growth, and Opportunity” held at Trace Expert City in Colombo. Organized in partnership with the University of Colombo, the event brought together policymakers, development partners, academics, and private sector leaders to discuss the country’s economic future.
Despite significant progress since Sri Lanka’s economic collapse in 2022, Sargsyan noted that serious structural issues remain. He highlighted concerns that many young people entering the labor market may struggle to secure formal and stable employment if current economic trends persist.
“A million young people will enter the workforce in the coming years. But indeed, with the current pace of the economy, only one third of them are expected or guaranteed to have formal quality jobs,” he said.
To address these concerns, the framework will prioritize four sectors identified as having strong growth potential: logistics, energy, tourism, and agribusiness. These sectors are expected to drive investment, improve productivity, and expand employment opportunities across the country.
During a panel discussion following the launch, several business leaders emphasized the need for reforms that would help companies scale and create more jobs. Ajit Gunewardene, Chairman and Founder of PickMe, pointed to the shortage of growth-stage capital as a major obstacle for emerging businesses.
He argued that many promising companies struggle to expand because financing is often directed toward other areas rather than supporting businesses that are ready for rapid growth and job creation.
The discussion also highlighted challenges related to workforce participation, particularly among women. Randhula De Silva, Founder and Chair of Good Life X, noted that outdated workplace structures continue to limit labor force participation.
She said many talented individuals remain outside the formal workforce because traditional work arrangements do not adequately support flexibility and caregiving responsibilities. Increasing workforce participation, especially among women, was identified as an important step toward strengthening employment opportunities and boosting economic productivity.
Meanwhile, Industrial Development Board Chairman Yasas Hewage revealed that reforms are already underway to modernize support systems for small and medium-sized enterprises. He said authorities are revising SME policies and updating institutional frameworks to better align with current economic realities and future labor market needs.
Dhananath Fernando, Chief Executive Officer of the Advocata Institute, stressed that long-term economic success depends on maintaining macroeconomic stability. He argued that stable monetary policy remains essential for attracting investment and sustaining private sector-led growth across key industries.
The new Country Partnership Framework represents a coordinated effort by the World Bank Group, including the International Finance Corporation and the Multilateral Investment Guarantee Agency, to help Sri Lanka transition from debt-driven economic models toward a more competitive and investment-focused economy.
As Sri Lanka continues its recovery journey, the framework is expected to serve as a roadmap for attracting investment, creating quality jobs, and supporting a resilient economic future built on private sector-led growth and expanded employment opportunities.