Asian Development Bank approves $100 million loan for Sri Lanka youth skills

The Asian Development Bank (ADB) has approved a $100 million loan to transform the technical and vocational education and training (TVET) system in Sri Lanka. The Skills Development System Transformation Program aims to align educational training with industry demands to address youth unemployment and skill shortages in key sectors.

The initiative, scheduled to roll out between 2027 and 2031, is expected to benefit over 100,000 young individuals. It focuses on modernizing vocational institutions and improving employment pathways for disadvantaged groups. A specific goal of the program is to increase female participation in nontraditional fields, including automotive technology, engineering, information and communications technology, construction, and renewable energy.

This investment comes as Sri Lanka seeks long-term economic recovery and seeks to reduce its dependence on low-skilled labor by fostering a more competitive, market-driven workforce.