Energy, Tourism, Ports: World Bank’s Big Bet on Sri Lanka Recovery

COLOMBO (News 1st); The World Bank Group has unveiled an ambitious five-year strategy for Sri Lanka aimed at creating one million jobs and accelerating private sector-led growth, as the country grapples with the dual pressures of climate-related disasters and global economic shocks.

Speaking on the new Country Partnership Framework for Sri Lanka and the Maldives, World Bank Group Country Manager Gezvorg Sargsyan highlighted the urgent need for resilience following recent crises, including the devastating Ditwah cyclone and the economic ripple effects of instability in the Middle East.

“We all witnessed the tragic Ditwah cyclone, with so many losses of lives and livelihoods. And right now we are all living through the economic impact of another crisis made somewhere else in the Middle East, but we all are paying the impact,” Sargsyan said.

He warned that climate change is likely to intensify the frequency and severity of natural disasters, stressing the need for preparedness.

“Unfortunately, especially because of climate change, we’ll likely see more of the natural disasters happening. So, we need to be prepared and resilient for that,” he added.

Against this backdrop, the World Bank’s framework places job creation at the centre of Sri Lanka’s recovery and long-term development strategy, with a strong emphasis on sustained private sector-driven growth.

Sargsyan outlined four priority sectors identified as key growth engines: ports and logistics, energy, tourism, and agribusiness.

He noted that Sri Lanka’s logistics sector, long considered a regional strength, has faced setbacks in recent years. “This has been the strength of Sri Lanka for decades. Unfortunately, in the last few years, we have seen declining performance of Colombo Port. It’s still one of the best ports, but there has been some downtrend. But we believe there is so much more that can be done here,” he said.

The energy sector remains another critical focus, with Sri Lanka facing some of the highest electricity costs globally. “Sri Lanka pays one of the highest costs of energy. I got my bill a few days ago and that was quite wow. I imagine how all you feel about that,” Sargsyan remarked, understanding the burden on households and businesses.

He stressed that beyond costs, energy security has become a key national concern, particularly following the shortages experienced during the 2022 economic crisis. “It is also about energy security. We know what it means not to get it… you experienced some of this insecurity in 2022 when there were fuel lines and no electricity generated,” he said.

Tourism, a vital foreign exchange earner, was identified as another sector with immense untapped potential. Describing Sri Lanka as a “fascinating country,” Sargsyan pointed to its diverse attractions and year-round appeal. “It’s packed with incredible experiences, whether it’s nature, culture, or one of the best beaches,” he said.

Agribusiness, with a shift towards value addition and exports, forms the fourth pillar of the strategy. Sargsyan highlighted Sri Lanka’s global reputation for products such as tea and cinnamon. “Some of what Sri Lanka produces are the best in the world. This is a brand that Sri Lanka should build on,” he said, adding that value addition would generate jobs and expand export markets.

To support these priorities, the World Bank Group has committed approximately $2 billion in financing over the next few years, alongside plans to mobilize more than $1.2 billion in private capital.

Sargsyan emphasized that the success of the strategy hinges on strong government leadership and collaboration among stakeholders. “First of all, we will need the government to be in the driving seat. We will need development partners to work with us hand in hand,” he said.

He reiterated that growth must be driven by the private sector, with the government acting as an enabler. “It is really private sector that creates jobs and creates these opportunities,” he noted.

The role of civil society and youth was also highlighted as crucial to shaping Sri Lanka’s future. “It is really your ambition, your creativity, your vision that will shape the future of the country,” Sargsyan said, addressing young Sri Lankans.

He reaffirmed the World Bank Group’s commitment to supporting Sri Lanka’s recovery and transformation. “We stand ready to support you in making sure that they become a reality,” he said.