The Government of Sri Lanka signed loan agreements worth a total of US$200 million with the Asian Development Bank (ADB) on November 6, 2026 to improve vocational education and training and strengthen the country’s water and sanitation sector.
The agreements were signed at the General Treasury in Colombo by Dr. Harshana Suriyapperuma, Secretary to the Ministry of Finance, Planning and Economic Development, on behalf of the Government of Sri Lanka, and Shannon Cowlin, ADB Country Director for Sri Lanka, on behalf of the Asian Development Bank.
Of the total financing, US$100 million will be provided for the Skills Development System Transformation Programme.
The Skills Development System Transformation Programme, which will be implemented from 2027 to 2031 through a results-based financing mechanism, aims to modernise Sri Lanka’s technical and vocational education and training (TVET) sector. The programme will strengthen skills development at the secondary education level, expand quality vocational training focused on employment, increase the involvement of industries and the private sector, and improve management and governance in the TVET sector.
As part of the programme, the existing Automobile Engineering Training Institute will be upgraded into a Centre of Excellence for automotive technology, while nine TVET centres will be transformed into regional training hubs.
Facilities at another 40 training centres will also be improved to provide better learning opportunities and expand access to quality vocational training.
In addition, 200 National Competency Standards, along with related curricula and learning materials, will be updated to meet the changing needs of the labour market.
New training courses will be introduced in priority occupations and sectors to address emerging skills needs. Standards will also be established for workplace-based training, while competency-based professional development programmes will be introduced to improve the skills of TVET teachers. The programme will also introduce policy, financial and digital reforms to improve the efficiency, quality and accessibility of vocational education and training. Financial support will be provided through programmes designed to help private training providers expand their services.
Under the digital transformation initiatives, an e-learning platform and an integrated training management information system will be developed. The system will be linked to labour market information systems and school management information systems.
These initiatives will also strengthen skills development pathways at the secondary education level and provide career guidance services to help students make informed decisions about their training options.
