January 23, Colombo (LNW): The World Bank has emphasised the importance of attracting more private sector investment to ensure Sri Lanka maintains its hard-won macroeconomic stability and supports its ongoing recovery efforts.
During his recent two-day visit to the island, Martin Raiser, the World Bank’s Vice President for South Asia, highlighted that Sri Lanka’s future growth hinges on bolstering private sector participation, especially through foreign direct investment (FDI).
According to Raiser, strengthening the country’s economic resilience requires an enhanced focus on creating jobs, increasing incomes, and fostering an environment conducive to business expansion.
“The mobilisation of private investment is key to unlocking Sri Lanka’s growth potential,” Raiser stated, noting that the country must channel efforts into stimulating sectors that drive long-term prosperity.
Sri Lanka, he pointed out, is well-positioned to tap into the burgeoning opportunities across multiple industries, including the digital economy, tourism, logistics, agricultural value chains, and renewable energy.
However, realising the full potential of these sectors will necessitate significant improvements to the current business climate.
“To make these opportunities a reality, Sri Lanka must create a more attractive and efficient environment for businesses to thrive,” he said.
In a demonstration of its commitment to supporting Sri Lanka’s development, Raiser announced that the World Bank will be financing three critical projects, amounting to US $200 million, in the coming months.
These projects will focus on rural development, improving the education sector, and establishing a facility designed to attract private investments specifically in the renewable energy sector.
Additionally, the World Bank outlined several key priorities for Sri Lanka over the medium term.
These include boosting the tourism industry, enhancing public service delivery, providing development support to underserved regions, and equipping the labour force with the skills needed to meet the demands of a rapidly evolving global economy.
These priorities will be integrated into a new Country Partnership Framework, which will guide the World Bank’s support for Sri Lanka in the coming years.
Raiser reaffirmed the World Bank’s commitment to assisting the nation’s development agenda, particularly in areas such as poverty reduction, digital transformation, and sustainable growth.
“We are committed to financing projects that directly impact the livelihoods of the people of Sri Lanka,” Raiser concluded, underscoring the importance of collaboration between the World Bank, the Sri Lankan government, and the private sector in driving the nation’s economic progress.
