Sri Lanka and the World Bank Group have launched a new five-year partnership aimed at supporting the island nation's economic recovery and boosting private investment, according to a joint announcement.
A new five-year Country Partnership Framework (CPF) was launched to support "Sri Lanka's continued recovery, help achieve its 7% medium-term economic growth target, and support job creation," according to a World Bank statement in Washington on Thursday.
“Making it easier to do business. Simplifying government regulations, modernising trade processes, and bringing more government services online will make Sri Lanka a more attractive place to do business and invest. These reforms will support Sri Lanka's ambition to double annual export earnings to $36 billion by 2030," it said.
1 April 2026
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"We are committed to building on the continued macroeconomic stability, strengthened governance and revenue-based fiscal consolidation that we have already achieved," President Anura Kumara Dissanayake said.
"Our goal is to confidently steer our economy towards strong, sustainable and inclusive growth. We are working towards an economic growth rate of over 7% in the medium term," he added.
"The World Bank Group has been with us for more than 7 decades. This partnership will further strengthen that relationship." The investments will expand the capacity of the Port of Colombo and attract private operators to help it remain as one of Asia's leading maritime hubs.
Johannes Zutt, World Bank Vice President for South Asia was impressed to see Sri Lanka's recovery over the past three years.
"Sri Lanka's recovery over the past three years has been hard-won and impressive. This new partnership framework is designed to ensure that the benefits reach everyone,” said Zutt.
"By pairing public resources with private capital and innovation, we aim to help Sri Lanka create quality jobs, including for women, young people, and communities that have been left behind." In the energy sector, Sri Lanka will have 70% of its electricity from renewable sources by 2030.
To create more and better jobs in tourism and agriculture. The partnership will support Sri Lanka's Tourism Strategic Plan 2026-2030, as well as connect farmers to new technologies, markets, and financing.
The war battered Northern and Eastern Provinces will receive dedicated investment and advisory support.
The partnership will prepare for future shocks.
"Following Cyclone Ditwah in November 2025, which caused an estimated $4.1 billion in damages and affected 2.2 million people, the partnership will fund stronger early warning systems and resilient infrastructure to help communities recover faster from future crises and with greater support." Private sector-led job creation is at the heart of the new partnership. Nearly one million young Sri Lankans are expected to enter the job market over the next decade. Without stronger growth and greater private investment, the economy will create only around 300,000 new formal jobs - leaving roughly 7 out of every 10 young job seekers without access to a quality job.
