Sri Lanka must focus on attracting more private sector investment to maintain its hard-earned macroeconomic stability and continued recovery, according to the World Bank.

As Sri Lanka’s growth prospects depend on mobilizing additional private sector investment, including foreign direct investment, the country will have to make greater efforts to raise employment and income levels, said Martin Reiser, World Bank Vice President for South Asia.

Reiser shared these sentiments during a two-day visit to Sri Lanka to discuss the World Bank’s medium-term priorities to support the country’s development.

“Sri Lanka has ample opportunities in the areas of digital economy, tourism, logistics, agricultural value chains and renewable energy. However, further improvements in the business environment will be required to realize this potential,” Riser said.

As part of its commitment, the World Bank plans to finance three major projects worth US$200 million in the next three months, Riser said.

These initiatives will focus on establishing a facility to attract private investment in rural development, education and renewable energy.

Moreover, the World Bank has outlined several medium-term goals for Sri Lanka, including improving the tourism sector, providing services and development support to backward areas and equipping the workforce.

These priorities will be incorporated into a Country Partnership Framework that will guide the World Bank’s engagement with Sri Lanka in the coming years.

“The World Bank is committed to supporting Sri Lanka’s development agenda, particularly in the areas of poverty reduction, digital transformation, and sustainability.”

“We look forward to financing projects that will have a direct impact on improving the livelihoods of the Sri Lankan people,” Riser said.