World Bank VP Concludes Sri Lanka Visit, Reaffirms Support for Economic Recovery and Long-Term Growth

Commitments Include $200 Million for Key Development Projects and Plans for Enhanced Private Sector Investment

Martin Raiser, World Bank Vice President for South Asia, wrapped up a two-day visit to Sri Lanka, engaging with President Anura Kumara Dissanayake, Prime Minister Harini Amarasuriya, government officials, private investors, and development partners. The visit centered on supporting Sri Lanka’s economic recovery and sustainable long-term growth.

During the visit, Raiser acknowledged the new government's development priorities and held productive discussions with private sector representatives on fostering economic growth and job creation.

Focus on Key Development Areas

The World Bank emphasized its commitment to addressing poverty, advancing digital development, and supporting the Clean Sri Lanka Initiative. To this end, the World Bank plans to finance three pivotal projects totaling $200 million within the next three months:

1. Rural Development: Expanding infrastructure and creating opportunities in underserved areas.
2. Education Enhancement: Strengthening access and quality of education, especially in rural and marginalized communities.
3. Renewable Energy Investments: Establishing a facility to attract private sector investment in sustainable energy solutions.

Strategic Development Priorities

Discussions also highlighted broader medium-term development goals, including:

• Tourism Expansion: Leveraging Sri Lanka’s cultural and natural assets to boost tourism as a key economic driver.
• Regional Development: Addressing disparities in growth, particularly in the northern regions.
• Logistics Sector Growth: Positioning Sri Lanka as a regional logistics hub to unlock trade and investment opportunities.
• Service Delivery: Enhancing governance and public service efficiency to support growth and inclusivity.
• Workforce Development: Equipping Sri Lanka’s workforce with future-ready skills to meet the demands of a rapidly evolving labor market.

Private Sector Investment and Governance

Raiser highlighted the importance of private sector mobilization and governance improvements to boost income and create jobs. “Sri Lanka’s growth prospects depend on mobilizing private sector investment, including foreign direct investment,” he noted. He identified key opportunities in the digital economy, tourism, logistics, agricultural value chains, and renewable energy, emphasizing the need for business climate reforms to unlock this potential.

Roadmap for Continued Collaboration

The World Bank’s upcoming mid-term review of the Country Partnership Framework (CPF) will outline future collaboration aligned with the government’s priorities. Expected to be finalized within six months, the updated CPF will guide the partnership toward shared objectives of recovery and sustainable, inclusive growth.

World Bank Commitment

“The World Bank is committed to supporting Sri Lanka’s development agenda, particularly in poverty reduction, digital transformation, and sustainability,” Raiser stated. He reiterated the World Bank’s readiness to provide comprehensive support by bridging public and private sector efforts.

A Vision for Sustained Growth

As Sri Lanka transitions from recovery to long-term growth, the World Bank’s continued engagement aims to ensure a resilient, inclusive future for the country, addressing pressing challenges while unlocking new opportunities for its people.