July 01 (Citizen News) – The World Bank’s Board of Executive Directors has approved USD 150 million in financing to support Sri Lanka’s reform program focused on attracting investment, improving competitiveness, and creating employment opportunities.
The funding is the first operation under the Sri Lanka Reforms for Growth, Resilience and Openness Development Policy Operation (REGROW DPO), a proposed three-part program. According to the World Bank Group, it builds on the earlier Resilience, Stability and Economic Turnaround (RESET) DPO initiative, shifting the focus from economic stabilization to long-term growth.
The World Bank said the REGROW program supports the government’s efforts to strengthen economic governance and boost competitiveness, helping pave the way for private sector-led growth and job creation.
The first phase provides budget support linked to reforms aimed at lowering trade barriers, improving the investment climate, and strengthening the financial sector.
It also supports measures to increase women’s participation in the workforce, improve the governance and performance of state-owned enterprises (SOEs), and enhance competition in the power sector to provide better services at 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 must now push forward with reforms that encourage private investment, promote high-value exports, and generate employment.
He added that the REGROW program is designed to support the country’s transition to a more competitive, transparent, and resilient economy capable of delivering sustainable and inclusive growth.
The World Bank Group also reaffirmed its commitment to helping countries create more and better jobs as a way to reduce poverty and expand economic opportunities.
It noted that the organization has partnered with Sri Lanka for more than 70 years and currently supports 13 active projects worth over USD 1.5 billion across sectors including education, healthcare, energy, transport, agriculture, and social protection.
The statement further said that the International Finance Corporation (IFC), the World Bank Group’s private sector arm, has committed nearly USD 1.8 billion in long- and short-term financing to Sri Lanka’s private sector between 2021 and 2026. - adaderana
