World Bank Signs $200 Million Agreement to Support Sri Lanka’s Economic Reforms

The World Bank and the Sri Lankan government have signed an agreement for an additional $200 million to support the country’s economic reforms, as announced in a statement from the World Bank on Monday.

This funding is part of the Second Resilience, Stability, and Economic Turnaround (RESET) Development Policy Operation (DPO), aimed at enhancing economic governance, boosting growth and competitiveness, and protecting vulnerable populations. The initiative seeks to strengthen Sri Lanka’s resilience and promote a more equitable economy.

This operation follows the first phase of the program, which involved a $500 million disbursement made in June and December 2023. The current funding is designed to improve economic governance, foster a stable macroeconomic environment, and restore investor confidence through essential reforms.

“Moving forward, Sri Lanka will have the opportunity to focus on maintaining its hard-earned stability and investing in the private sector to transform its national growth trajectory. This is crucial for boosting economic growth, creating jobs, and ensuring that the benefits of a stronger, more resilient economy reach all citizens,” stated David Sislen, World Bank regional country director for the Maldives, Nepal, and Sri Lanka.