ADB Approves $100 Million Loan to Strengthen Sri Lanka’s Skills and Youth Employment
COLOMBO, October 2, 2026 — The Asian Development Bank (ADB) has approved a $100 million results-based loan to support Sri Lanka’s efforts to modernise its technical and vocational education and training (TVET) system, strengthen industry-linked skills and expand employment opportunities for young people.
The Skills Development System Transformation Program will focus on improving the quality and relevance of vocational training while strengthening connections between training institutions and industries.
The programme is designed to help address skills shortages in key sectors of the economy, where employers continue to face difficulties in finding workers with the technical and professional capabilities required by a changing labour market.
ADB said the programme will also place greater emphasis on expanding employment opportunities for women, particularly in traditionally male-dominated sectors such as automotive technology, engineering, information and communications technology, construction and renewable energy.
“A skilled workforce is essential to Sri Lanka’s long-term economic transformation and competitiveness,” said ADB Country Director for Sri Lanka Shannon Cowlin.
She said the programme would strengthen pathways from education to employment by making skills training more responsive to industry requirements and expanding opportunities for young people and women.
Sri Lanka’s economic recovery has been accompanied by continuing labour-market challenges, including skills gaps in priority industries, high youth unemployment and relatively low female labour force participation.
The ADB-backed programme is intended to address these constraints by improving access to employment-oriented training and strengthening collaboration between vocational education providers and businesses.
Aligned with the Technical and Vocational Education and Training Sector Strategic Framework 2026–2035, the nationwide programme will be implemented from 2027 to 2031.
The programme is expected to directly benefit more than 100,000 young people, providing them with improved access to quality training designed around the needs of Sri Lanka’s evolving economy.
For businesses, the initiative is expected to strengthen the pipeline of skilled workers available to priority industries while supporting broader efforts to improve productivity, employment and competitiveness.
