World Bank extends support for SL economic reforms

The World Bank and the Government of Sri Lanka signed a US $200 million agreement today.

This is marking as the second phase of a two-part series that began in 2022, a press release from the World Bank said.

The first phase, totaling $500 million, was disbursed in June and December 2023.

This second Resilience, Stability, and Economic Turnaround (RESET) Development Policy Operation (DPO) is designed to support reforms aimed at improving economic governance, enhancing growth and competitiveness , and protecting the poor and vulnerable.

The goal is to build Sri Lanka’s resilience and foster a more equitable economy, the release said.

A central aspect of this agreement is the protection of the poor and vulnerable, with a particular emphasis on women's empowerment and reducing gender discrimination, to promote higher and more sustainable growth in Sri Lanka.

The operation focuses on strengthening economic governance to create a stable macroeconomic environment and restore investor confidence through key reforms. It also aims to improve living standards and stimulate private sector development.

Key measures include amendments to the Telecommunications Act and a new Electricity Act to improve services in these sectors.

Additionally, the operation seeks to enhance export competitiveness by phasing out para-tariffs and lowering customs duties.

David Sislen, the World Bank's Regional Country Director for Maldives, Nepal, and Sri Lanka, said  ,They are very proud of the excellent collaboration with the authorities and their steadfast dedication to addressing the needs of the Sri Lankan economy.

He further emphasized , "This operation represents support for critical reforms over the past two years, which were central to economic stabilization,"  "Moving forward, Sri Lanka will now have the opportunity to focus on maintaining its hard-earned stability and investing in the private sector to transform the national growth trajectory. Doing so is vital to boosting economic growth, creating jobs, and ensuring that everyone benefits from a stronger, more resilient economy."