The World Bank Group (WBG) and the Government of Sri Lanka today unveiled a new five-year Country Partnership Framework (CPF) aimed at supporting the country’s ongoing economic recovery, achieving a medium-term growth target of 7%, and generating employment opportunities.
Under the partnership, the World Bank Group is expected to mobilise over US$2 billion in support. This includes more than US$1 billion in direct and mobilised investments by the International Finance Corporation (IFC) over five years, alongside up to US$1 billion in low-interest financing from the World Bank over the next three years. The initiative will leverage the full suite of WBG tools, including financing, guarantees, advisory services, and private capital mobilisation.
President Anura Kumara Dissanayake emphasised the government’s commitment to sustaining economic reforms and achieving inclusive growth. “We are committed to building on continued macroeconomic stability, strengthened governance, and revenue-based fiscal consolidation. Our goal is to steer the economy towards strong, sustainable, and inclusive growth, targeting over 7% in the medium term,” he said. He also noted the longstanding relationship with the World Bank Group, which spans more than 70 years.
A key focus of the CPF is private sector-led job creation, particularly as nearly one million young Sri Lankans are expected to enter the workforce over the next decade. Without accelerated growth and increased private investment, only around 300,000 formal jobs are projected to be created, leaving a significant gap in quality employment opportunities.
World Bank Vice President for South Asia Johannes Zutt highlighted the importance of inclusive recovery. “Sri Lanka’s recovery over the past three years has been hard-won. This framework is designed to ensure its benefits reach all segments of society by combining public resources with private sector innovation,” he said.
Echoing this, IFC Vice President for Asia and the Pacific Sarvesh Suri stressed the role of the private sector in driving future growth. “Sri Lanka’s next phase of development will depend on a competitive and innovative private sector capable of creating jobs. With its strategic location and skilled workforce, the country is well-positioned to expand its regional presence, and we remain committed to supporting this transformation,” he said.