The Government of Sri Lanka had discussions with the Asian Development Bank (ADB) to mobilize a loan facility amounting to USD 100 million from the Asian Development Bank for the implementation of the Skills Development System Transformation Program under the result-based financing modality.
The loan will be utilized to finance the strengthening skills pathways at the secondary level, expanding quality and employment-oriented skills training, strengthening industry and private sector engagement in Technical and Vocational Education and Training (TVET) and strengthening TVET sector governance. The program is scheduled to be implemented from 2027 to 2031.
This program aims to modernize Sri Lanka’s TVET sector by upgrading the existing Automobile Engineering Training Institute into a Centre of Excellence for Automobile Technology and transforming 09 TVET centers into regional hubs. In addition, facilities at 40 other training centers will be improved to enhance the quality of learning and expand access to quality training.
Further, the program will update 200 National Competency Standards, curricula, and learning materials to ensure alignment with labour market requirements. New courses will be introduced in priority occupations and sectors to address emerging skills demands. Furthermore, standards for workplace-based training will be established, and the capacities of TVET teachers will be strengthened through competency-based professional development.
Moreover, this will improve the efficiency, quality, and accessibility of skills development through policy, financing, and digital reforms. In addition, this assists for financing schemes to expand training provision by private training providers. Digital transformation initiatives will also include the development of an e-learning platform and an unified Training Management Information System linked with labor market and school management information systems. This will strengthen skills pathways at the secondary level and provide strategic career guidance to help students to make training choices.
Accordingly, the Loan Agreement to obtain the above financing facility was signed at the General Treasury in Colombo by Dr. Harshana Suriyapperuma, Secretary, Ministry of Finance, Planning and Economic Development on behalf of the Government of Sri Lanka, and Mrs. Shannon Cowlin, Country Director, ADB Sri Lanka Residence Mission, on behalf of the Asian Development Bank on, 06 November 2026.
