ADB Approves $100 Million Financing for Sri Lanka Vocational Training Program

COLOMBO, Sri Lanka — The Asian Development Bank (ADB) approved a $100 million results-based loan on 29 September 2026 to support Sri Lanka in transforming its technical and vocational education and training (TVET) system and expanding youth employment.

The Skills Development System Transformation Program is designed to assist the Sri Lankan government in enhancing the quality and relevance of skills training, connecting training institutions with industries, and increasing jobs for young people. The initiative also aims to boost female employment in nontraditional sectors, such as engineering, automotive technology, information and communications technology, construction, and renewable energy.

According to the ADB, Sri Lanka's recovering economy faces challenges that include skill shortages across priority sectors, high rates of youth unemployment, and low participation of women in the labor force, leaving employers struggling to recruit appropriately skilled workers.

“A skilled workforce is essential to Sri Lanka's long-term economic transformation and competitiveness,” said ADB Country Director for Sri Lanka Shannon Cowlin. “This program will help create stronger pathways from education to employment by making training more responsive to industry needs, expanding opportunities for young people and women, and ensuring that graduates have the skills required by a modern and evolving economy.”

The nationwide program aligns with Sri Lanka's TVET Sector Strategic Framework 2026–2035 and is scheduled for implementation between 2027 and 2031. The ADB expects the program to directly benefit over 100,000 young individuals through enhanced access to employment-focused training.

Key components of the program include career guidance for secondary students, capacity-building programs for teachers, and increased coordination between schools and training centers. To upgrade TVET delivery, plans include establishing an automotive technology center of excellence, deploying a hub-and-spoke training structure across all nine provinces, modernizing facilities, and introducing new courses aligned with industry needs. It will also foster workplace-based learning and involve the private sector in skills assessment and certification.

Governance and quality assurance will be addressed through a national accreditation system, performance-based financing, and a unified digital training management information system.

The total financing package provided by the ADB comprises a $50 million regular loan, a $50 million concessional loan, and an additional $500,000 technical assistance grant.

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