World Bank approves US$150 Million to support Sri Lanka’s reform agenda
The World Bank has approved US$150 million in financing to support Sri Lanka’s reforms to boost investment, strengthen competitiveness and create jobs.
The financing was approved by the World Bank’s Board of Executive Directors under the Sri Lanka Reforms for Growth, Resilience and Openness Development Policy Operation, known as REGROW DPO.
The REGROW DPO is the first in a proposed series of three operations. It builds on the World Bank’s earlier support under the Resilience, Stability and Economic Turnaround, or RESET, DPO series.
According to the World Bank, the new programme shifts the focus from economic stabilization to long-term growth. It will support the Government’s efforts to improve economic governance and competitiveness, which are seen as important for private sector-led growth and job creation.
The first operation will provide budget support based on reforms to reduce trade barriers, improve the investment climate and strengthen the financial sector.
It will also support measures to expand women’s employment, improve the performance and governance of state-owned enterprises, and strengthen competitiveness in the power sector. The World Bank said these measures are expected to help deliver better services and lower energy costs.
World Bank Group Country Manager for Sri Lanka Gevorg Sargsyan said Sri Lanka has made significant progress in stabilizing its economy, and that it is now important to move forward with reforms that can unlock private investment, support high-value exports and create jobs.
He said the REGROW DPO supports Sri Lanka’s move towards a more competitive, transparent and resilient economy that can deliver sustainable and inclusive growth for all Sri Lankans.
The World Bank Group said it remains committed to helping countries create more and better jobs as a way to reduce poverty and expand economic opportunities.
The World Bank has partnered with Sri Lanka for more than 70 years. It currently supports 13 active projects worth more than US$1.5 billion in key sectors, including education, health, energy, transport, agriculture and social protection.
The International Finance Corporation, the World Bank Group’s private sector arm, has committed nearly US$1.8 billion in long-term and short-term financing to Sri Lanka’s private sector between 2021 and 2026.
