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ADB Targets Sri Lanka’s Skills Gap With $100 Million Vocational Overhaul

The Asian Development Bank has approved a $100 million loan to modernize Sri Lanka’s vocational training system, aiming to bridge the disconnect between classroom education and industry demands. The program seeks to equip 100,000 young people with market-relevant skills while addressing critical shortages in sectors like renewable energy and technology.

ADB Targets Sri Lanka’s Skills Gap With $100 Million Vocational Overhaul

Running from 2027 to 2031, the initiative aligns with the government’s 2026–2035 strategic framework to overhaul technical and vocational education across all nine provinces. The strategy focuses on a hub-and-spoke model, connecting central training facilities with regional institutions. Plans include a new automotive technology center of excellence and updated curricula tailored to priority industries. By involving employers in skill assessment and certification, the program aims to ensure that graduates possess the specific capabilities businesses require for recruitment.

A central pillar of the reform is improving female workforce participation. Women will receive targeted support to enter traditionally male-dominated fields, including engineering, construction, and information technology. Shannon Cowlin, ADB Country Director for Sri Lanka, emphasized that building a skilled workforce is vital for the nation's long-term economic competitiveness. To maintain accountability, the bank is utilizing a results-based financing approach, where funding is explicitly tied to measurable improvements in training outcomes. This includes a new digital management system to align educational output with real-time labor market shifts.

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