Sri Lanka Signs Additional $200 Million Support Agreement with World Bank

The Second RESET DPO supports reforms aimed at improving economic governance, boosting growth, and protecting the poor. Key reforms include a new Public Debt Management Act, tax administration improvements and measures to enhance financial stability, addressing financial sector risks by tightening single borrower limits and improving mechanisms for resolving non-performing loans. To improve living standards and boost private sector development, the operation includes amendments to the Telecommunications Act and a new Electricity Act to improve services in these markets, as well as measures to enhance export competitiveness by phasing out para-tariffs and lowering customs duties.

The initiative also focuses on revitalizing social protection systems and enhancing women's empowerment and promoting gender equality to foster sustainable growth.

David Sislen, World Bank Regional Country Director for the Maldives, Nepal, and Sri Lanka, commended Sri Lanka's progress and emphasized the importance of maintaining stability and investing in the private sector for long-term economic growth.