Sri Lanka Country Partnership Framework FY2026-FY2030 - World Bank Group Country Partnership Framework

Jul 19, 2026

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Sri Lanka Country Partnership Framework FY2026-FY2030 outlines World Bank Group support for Sri Lanka’s continued economic recovery and job creation, emphasizing private sector-led growth and a One WBG approach anchored in private capital mobilization. The framework targets key structural reforms, strengthening ports and energy infrastructure, and accelerating agribusiness and tourism to expand quality employment. It also addresses persistent macro vulnerabilities after the 2021 crisis, poverty and food insecurity challenges, and disaster resilience needs highlighted by Cyclone Ditwah.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages8

Reading Time20 min

Country context and development challenges

Economic recovery after crisis and sovereign debt default

Structural constraints affecting growth, investment, and jobs

Cyclone Ditwah impacts and resilience needs

Priority directions for private sector-led growth

Public Disclosure Authorized Public Disclosure Authorized Document of The World Bank FOR OFFICIAL USE ONLY Report No. CPF0000069 INTERNATIONAL DEVELOPMENT ASSOCIATION INTERNATIONAL FINANCE CORPORATION MULTILATERAL INVESTMENT GUARANTEE AGENCY COUNTRY PARTNERSHIP FRAMEWORK FY2026-FY2030 FOR THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA P514704 March 2, 2026 Sri Lanka Country Management Unit South Asia Region The International Finance Corporation South Asia Region The Multilateral Investment Guarantee Agency This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank Group authorization. Official Use Only The date of the last Country Partnership Framework was June 28, 2023. FISCAL YEAR April 1 – March 31 CURRENCY EQUIVALENTS (Exchange Rate Effective as of February 19, 2026) Currency Unit = Sri Lankan Rupee (LKR) US$ 1 = LKR 309.52 ABBREVIATIONS AND ACRONYMS CCDR CPF DPO FY GDP GW IBRD IDA IFC Country Climate and Development Report Country Partnership Framework Development Policy Operation Fiscal Year Gross Domestic Product Gigawatt International Bank for Reconstruction and Development International Development Association International Finance Corporation IT MIGA MSME PCM PPP SDFP SME SOE US$ WBG Information Technology Multilateral Investment Guarantee Agency Micro, Small, and Medium Enterprises Private Capital Mobilization Purchasing Power Parity Sustainable Development Finance Policy Small and Medium Enterprises State-owned Enterprise United States Dollar World Bank Group | | World Bank | IFC | MIGA | | --- | --- | --- | --- | | Vice President | Johannes Zutt | Sarvesh Suri | Edward Mountfield | | Director | David N. Sislen | Imad Fakhoury | Sebnem Erol Madan | | Country Manager | Gevorg Sargsyan | | | | Task Team Leaders | Stephan Massing | Shanuki Gunasekera | Olena Koltko | ii Official Use Only FY2026-30 COUNTRY PARTNERSHIP FRAMEWORK FOR THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA 1. This World Bank Group (WBG) Country Partnership Framework (CPF) supports Sri Lanka’s continued economic recovery and job creation through private sector-led growth. It outlines support for the government’s development agenda, as articulated in national budgets, including an ambitious 7 percent growth target driven by sustained reform momentum, a commitment to pro-poor policies and developing lagging regions, and recovery and reconstruction from the recent cyclone. Leveraging a One WBG approach and centered on private capital mobilization (PCM), the CPF prioritizes engagements to advance critical structural reforms, strengthen ports and energy infrastructure, and accelerate agribusiness and tourism – sectors with strong potential for job creation. 2. Three years after an economic and political crisis culminated in a sovereign debt default, Sri Lanka has restored stability, supported by key policy reforms and public debt restructuring, yet macro vulnerabilities remain. Medium- to long-term growth prospects have improved, supported by macro-economic reforms, adherence to the International Monetary Fund’s Extended Fund Facility program, and an improved sovereign rating that is expanding space for private investment. Nonetheless, continued efforts to rebuild fiscal and external buffers remain essential. Poverty is expected to fall to 22.3 percent in 2025 (US$4 .20 PPP), after more than doubling from 11.5 percent in 2019 to 27.5 percent in 2023, and is projected to remain near 20 percent over the medium term. Food insecurity remains high (33 percent nationally) and the labor market has yet to fully recover, with many jobs lost during the crisis not restored. 3. The crisis exposed deep-seated structural constraints that continue to weigh on Sri Lanka’s recovery and jobs agenda. High tariff

FAQs

What is the main purpose of the Sri Lanka Country Partnership Framework FY2026-FY2030?

It supports Sri Lanka’s economic recovery and job creation through private sector-led growth. The framework sets out how World Bank Group assistance advances the government’s development agenda and priority reforms.

Which sectors does the framework prioritize to create jobs?

It prioritizes engagements to strengthen ports and energy infrastructure and to accelerate agribusiness and tourism. These areas are described as having strong potential for job creation.

What key challenges does the framework identify after the economic and political crisis?

It highlights macro vulnerabilities and the need to rebuild fiscal and external buffers, alongside structural constraints such as tariff barriers, weak trade facilitation, regulatory unpredictability, and limited access to finance affecting private investment and productivity.

Jul 19, 2026

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