The Asian Development Bank (ADB) has announced a $100 million results-oriented loan aimed at enhancing Sri Lanka’s technical and vocational education and training (TVET) system while promoting women’s employment in nontraditional sectors. The financing package includes a $50 million standard loan, another $50 million in concessional funding, along with a $500,000 technical assistance grant from ADB.
The initiative, known as the Skills Development System Transformation Program, is designed to provide youth with skills that align with industry requirements, bolster the nation’s competitiveness, and expand job opportunities for women in fields such as automotive technology, engineering, information and communications technology, construction, and renewable energy.
“A skilled workforce is pivotal for the long-term economic transformation and competitiveness of Sri Lanka,” stated Shannon Cowlin, ADB’s Country Director for Sri Lanka. “This program aims to establish more effective pathways from education to employment by tailoring training to meet industry demands, broadening opportunities for youth and women, and ensuring that graduates possess the necessary skills for a dynamic economy.”
According to ADB, Sri Lanka is currently facing significant skills shortages in key sectors, high rates of youth unemployment, and low participation of women in the labor force, with many employers struggling to find suitably skilled workers in an evolving economic landscape.
The program is set to be executed from 2027 to 2031 and is anticipated to benefit over 100,000 young individuals by providing improved access to quality, job-oriented training. It will also enhance career guidance for secondary school students, boost capacity-building for educators, and improve coordination between educational institutions and training providers.
Additionally, the initiative will establish a center of excellence in automotive technology, implement a hub-and-spoke training model across all nine provinces, upgrade educational facilities, and introduce new courses aligned with industry needs in priority sectors. It will further strengthen collaborations between training providers and employers through workplace-based learning, involve industry in skills assessments and certifications, and enhance the engagement of the private sector.
Moreover, the program aims to elevate quality assurance through a national accreditation framework, introduce performance-based financing models, and implement a digital training management information system that aligns skill development with labor market requirements. (Colombo/Oct2/2026)
