Sri Lanka and the World Bank Group have launched a new five-year Country Partnership Framework aimed at supporting economic recovery, boosting private investment, and creating jobs, according to a joint announcement.

The framework is designed to help Sri Lanka achieve a medium-term economic growth target of 7% while addressing employment challenges, particularly among young people entering the workforce over the next decade.

President Anura Kumara Dissanayake said the government aims to build on recent macroeconomic stability and reforms to guide the country toward sustainable and inclusive growth. He noted that the partnership with the World Bank Group, which spans more than 70 years, will be further strengthened under the new framework.

World Bank Vice President for South Asia Johannes Zutt said Sri Lanka’s recovery in recent years has been significant and that the new framework is intended to ensure broader benefits across society, including for women, youth, and underserved communities.

The partnership places a strong emphasis on private sector-led job creation. Officials estimate that nearly one million young people will enter the labor market over the next decade, while current projections indicate only about 300,000 formal jobs may be created without increased investment and growth.

Under the framework, the World Bank Group will mobilize more than $1 billion in investment through the International Finance Corporation over five years, along with up to $1 billion in concessional financing from the World Bank over three years.

The initiative focuses on improving the business environment, expanding infrastructure, strengthening tourism and agriculture, and enhancing resilience to future shocks. Planned measures include modernizing trade processes, expanding the Port of Colombo, increasing renewable energy generation to 70% by 2030, and supporting regional development in the Northern and Eastern provinces.

The World Bank Board has already approved the first project under the framework — a $100 million program targeting economic development in the Northern and Eastern provinces. The project is expected to support small businesses, particularly women-led enterprises, and create about 3,000 jobs by 2031.

The World Bank Group currently supports 13 active projects in Sri Lanka valued at more than $1.5 billion, covering sectors including education, health, energy, transport, agriculture, and social protection. (Newswire)

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