World Bank provides $1 Billion Support Package to Sri Lanka to create Jobs and Business

The World Bank Group has announced a large new plan to help create jobs and boost private business growth in Sri Lanka. This plan includes over $1 billion in financial support over the next three years.

The goal is to invest in key areas of the economy that can bring more jobs and attract business investments. These areas are:

• Energy
• Agriculture
• Tourism
• Regional Development

This effort is meant to give more people in Sri Lanka better economic opportunities, strengthen local businesses, and bring in private companies to invest for long-term development.

The announcement came after a meeting in Sri Lanka between President Anura Kumara Dissanayake and World Bank Group President Ajay Banga. This is the first time in 20 years that a World Bank President has visited Sri Lanka, showing the Bank’s strong commitment to helping the country recover and grow its economy.

What the Leaders Said:

President Anura Kumara Dissanayake said this plan is an investment in the people of Sri Lanka. He said it would help:

• Create jobs
• Support small businesses
• Provide new opportunities in all parts of the country

He added that the government is dedicated to making sure this partnership brings real improvements to people’s lives.

World Bank Group President Ajay Banga said that this is a good moment for Sri Lanka. The economy is starting to stabilize and grow again, and it’s important to keep moving forward with reforms. By improving conditions for private businesses, the country can create more jobs—especially in industries that have the potential to employ many people.

Why This Is Important:

According to the World Bank, about 1 million young people will enter the job market in Sri Lanka in the next 10 years. But only around 300,000 new jobs are expected to be created unless action is taken. This funding plan is designed to close that gap by encouraging both government and private investment.

Breakdown of the $1 Billion Plan:

1. Energy – $185 million:
   • To support solar and wind power projects that can produce up to 1 gigawatt of energy.
   • This will help reduce electricity costs for homes and businesses.
   • It also includes $40 million in guarantees and is expected to attract more than $800 million in private investment.
2. Agriculture – $100 million:
   • To help farmers and agricultural businesses use better technology, sell their products in more markets, and attract private investment.
   • Over 380,000 people will benefit, including 8,000 food producers.
   • An extra $17 million from private sources is expected.
3. Tourism – $200 million:
   • To grow tourism while protecting natural and cultural sites.
   • The project will create jobs and help local communities benefit from tourism.
4. Regional Development – $200 million:
   • To invest in better roads, businesses, and job creation in areas that have been left behind in the past, especially the Northern and Eastern Provinces.

This plan brings together the World Bank’s funding, expertise, and connections with private companies. It shows how the World Bank can support a country’s economy from different angles to create more and better jobs.

The World Bank has worked with Sri Lanka for over 70 years and currently has more than $2.2 billion invested in the country. This new plan strengthens that partnership, with a focus on creating opportunities, supporting private businesses, and helping Sri Lanka build a stronger and fairer economy.