World Bank Jobs Strategy: A Roadmap for Sri Lanka 📈

World Bank President Ajay Banga warns of a "slow burn" crisis: 1.2 billion youth entering the global workforce over 15 years, with only 400 million jobs projected. For Sri Lanka, aligning with the Bank's three-pillar strategy is critical to address its youth unemployment (20.8%) and incomplete recovery. • Economic Landscape (2025-2026) • Sri Lanka GDP growth projected at 4.6% (2025) and 3.5% (2026). • National unemployment rose to 4.3% in Q3 2025; agriculture employment fell sharply while services and industry grew. • Tourism revenue is a major driver, targeting US$ 4.3 Bn from 3 million arrivals in 2026. • Strategic Pillars for Job Creation • Infrastructure: Focus on human and physical capital. The World Bank emphasizes skills centers (e.g., in India) as models for Sri Lankan ICT/BPM and education sectors to meet market demand. • Business Environment: Streamlining regulations to empower MSMEs, which generate the majority of domestic employment. • Scaling Businesses: The IFC (World Bank arm) recently announced a US$ 166 Mn investment to support Sri Lankan agri-business and women-owned SMEs. • Sectoral Focus • Employment potential is highest in infrastructure & energy, agribusiness, primary healthcare, tourism, and value-added manufacturing. • Manufacturing PMI rose to 60.9 in late 2025, signaling expansion and increased hiring in food and beverage production.