ADB approves $100 million loan to boost skills development and jobs for youth in Sri Lanka

The Asian Development Bank (ADB) has granted a $100 million loan to Sri Lanka to improve its technical and vocational education and training (TVET) system. This results-based loan aims to equip more young people with skills relevant to the industry and enhance the country's competitiveness and inclusive growth. The Skills Development System Transformation Program will support the Sri Lankan government in elevating the quality and relevance of skills training, building connections between training providers and industries, and boosting employment opportunities for the youth.

The program will specifically focus on increasing women's employment in nontraditional sectors such as automotive technology, engineering, information and communications technology, construction, and renewable energy. ADB Country Director for Sri Lanka, Shannon Cowlin, emphasized that a skilled workforce is crucial for the nation's long-term economic transformation and competitiveness.

The program will create better pathways from education to employment by making training more aligned with industry demands, expanding opportunities for young people and women, and ensuring graduates possess the necessary skills for a modern and evolving economy.

Despite Sri Lanka's economic recovery, the country faces challenges such as skills shortages in priority sectors, high youth unemployment, and low female labor force participation. Employers struggle to find workers with the skills required in the changing economy. This nationwide program, aligned with the Government of Sri Lanka's Technical and Vocational Education and Training Sector Strategic Framework 2026–2035, will be implemented from 2027 to 2031.

It is expected to directly benefit over 100,000 young people by providing them with access to high-quality, employment-oriented training.