World Bank pledges $200 Million to support Sri Lanka’s economic recovery

Martin Raiser, Vice President for South Asia at the World Bank, concluded a two-day visit to Sri Lanka yesterday (January 22).

He reaffirmed the World Bank’s commitment to the country’s economic recovery and long-term growth during his meetings with President Anura Kumara Dissanayake, Prime Minister Dr. Harini Amarasuriya, private sector leaders, and development partners.

Key discussions focused on Sri Lanka’s development priorities, including poverty reduction, digital transformation, and environmental sustainability.

The World Bank announced plans to finance three critical projects worth $200 million over the next three months.

These projects will address rural development, improve education, and create a facility to attract private investment in renewable energy.

“The World Bank is committed to supporting Sri Lanka’s development agenda, particularly in the areas of poverty reduction, digital transformation, and sustainability,” said Raiser.

Raiser emphasized the importance of mobilizing private sector investment, particularly foreign direct investment, to enhance growth and job creation.

Opportunities exist in tourism, the digital economy, logistics, agricultural value chains, and renewable energy. However, realizing this potential will require significant improvements in governance and the business climate.

During his meetings, Raiser discussed medium-term priorities such as:

• Enhancing the tourism sector.
• Supporting underdeveloped regions, especially in the North.
• Promoting logistics as a growth driver.
• Improving public service delivery.
• Equipping the workforce with skills for evolving job markets.

The World Bank will outline its future support for Sri Lanka in a mid-term review of the Country Partnership Framework (CPF), set to be finalized within the next six months.

This document will align with the government’s priorities and serve as a roadmap for collaboration.

Raiser concluded by reiterating the World Bank’s readiness to provide comprehensive support to help Sri Lanka transition from recovery to sustained, inclusive economic growth.