World Bank approves US$150mn to support Sri Lanka’s reform-led growth push

The World Bank’s Board of Executive Directors has approved US$150 million in financing to support Sri Lanka’s reform agenda aimed at boosting investment, strengthening competitiveness, and creating jobs. The Sri Lanka Reforms for Growth, Resilience and Openness Development Policy Operation (REGROW DPO) is the first in a proposed series of three operations and builds on the earlier support under the Resilience, Stability and Economic Turnaround (RESET) DPO series, shifting focus from stabilization to supporting long-term growth. The REGROW series supports the government’s efforts to strengthen economic governance and competitiveness, key to unlocking private sector-led growth and job creation. The first operation provides budget support anchored in reforms to reduce trade barriers, improve the investment climate, strengthen the financial sector. It also supports measures to expand women’s employment, improve the performance and governance of state-owned enterprises (SOEs), and enhance power sector competitiveness to deliver better services and lower energy costs. “Sri Lanka has made significant progress in stabilizing its economy, and now it is critical to advance reforms that can unlock private investment, facilitate high value export and create jobs,” said Gevorg Sargsyan, World Bank Group Country Manager for Sri Lanka. “The REGROW DPO supports the transition to a more competitive, transparent, and resilient economy – one that can deliver sustainable and inclusive growth for all Sri Lankans.” The World Bank Group is committed to helping countries generate more and better jobs as a pathway to reducing poverty and expanding economic opportunities. In Sri Lanka, it has partnered with the country for over 70 years and currently supports 13 active projects totaling more than $1.5 billion across key sectors, including education, health, energy, transport, agriculture, and social protection. IFC, its private sector arm, has committed nearly $1.8 billion in long- and short-term financing to Sri Lanka’s private sector between 2021 and 2026. (Newswire)