In a major boost to Sri Lanka’s workforce and economic recovery, the Asian Development Bank (ADB) has approved a USD 100 million results based loan alongside a USD 500,000 technical assistance grant to modernize the country’s technical and vocational education and training (TVET) system.

The initiative, titled the Skills Development System Transformation Programme, aims to bridge the gap between training and employment as the nation faces high youth unemployment, low female labour force participation, and persistent skill shortages reported by employers. Implemented nationwide from 2027 to 2031, the project is expected to directly benefit over 100,000 young people by aligning vocational training with modern industry demands.

Aligned with Sri Lanka’s TVET Sector Strategic Framework 2026-2035, the programme focuses heavily on expanding career guidance for secondary students, upgrading teacher capacity and improving coordination between schools and training centers. Key modernization efforts include establishing a center of excellence for automotive technology, introducing a hub and spoke training model across all nine provinces and launching new courses in priority sectors. A primary objective is boosting female employment in traditionally male dominated industries, including automotive technology, engineering, information and communications technology, construction and renewable energy.

To ensure long term sustainability and job readiness, the programme deepens private sector involvement through workplace based learning and industry participation in learner certification. Systemic improvements will also introduce performance based financing, a national accreditation system and a unified digital training management information system.(Eduwire)