World Bank unveils $1 bn support plan to boost Sri Lanka's economy

The World Bank on Wednesday announced a package of USD one billion over three years to support job creation and develop private sector growth in Sri Lanka, a press release said.

The announcement came after a meeting between World Bank President Ajay Banga and President Anura Kumara Dissanayake here.

The initiative aims to expand economic opportunity, strengthen local industry and attract private capital to support long term growth, the release said.

The World Bank estimates that nearly one million young people would enter Sri Lanka's work force over the next decade, yet only 300,000 jobs are projected to be created over the same period.

The project is expected to mobilise over 800 million dollars in private investment and includes 40 million dollars in guarantees.

Dissanayake's office said digitalization, tourism, agriculture and infrastructure development and advancing development of North and Eastern provinces figured at the talks between him and Banga.

On April 25, the International Monetary Fund (IMF) and Sri Lanka reached an agreement in Washington on the fourth review of the USD 2.9 billion Extended Fund Facility (EFF) programme, which was originally approved in March 2023 to assist Sri Lanka in navigating its worst economic crisis since independence.

The IMF in a statement then commended the Sri Lankan government for its continued commitment to the economic reforms initiated under the EFF.