World Bank approves USD 150mn for Sri Lanka reforms

The World Bank’s Board of Executive Directors approved USD 150 million to back a reform agenda focused on enhancing investment, competitiveness, and job creation in Sri Lanka.

Known as the Sri Lanka Reforms for Growth, Resilience and Openness Development Policy Operation (REGROW DPO), this initiative serves as the first in a three-part series. It follows the previous Resilience, Stability and Economic Turnaround (RESET) series, moving the national focus from economic stabilisation toward long-term growth.

The REGROW series assists government efforts to improve economic governance and competitiveness, which are essential for private sector expansion. This initial operation provides budget support tied to reforms such as lowering trade barriers, improving the investment climate, and strengthening the financial sector.

Additionally, the programme supports initiatives to boost women’s employment, improve the governance of state-owned enterprises, and increase power sector competitiveness to lower energy costs and improve service delivery.

Gevorg Sargsyan, World Bank Group Country Manager for Sri Lanka, noted that the nation made significant progress in stabilising its economy, making it critical to advance reforms that unlock private investment and facilitate high-value exports. He added that the REGROW DPO supports a transition to a more competitive, transparent, and resilient economy capable of delivering sustainable growth for all citizens.

The World Bank maintains a partnership with Sri Lanka spanning over 70 years. It currently supports 13 active projects valued at more than USD 1.5 billion across sectors including health, education, transport, and agriculture. Furthermore, the International Finance Corporation, the organisation's private sector arm, committed nearly USD 1.8 billion in financing to the Sri Lankan private sector between 2021 and 2026.