World Bank approves $150 mn for Sri Lanka’s REGROW reforms

The World Bank’s Board of Executive Directors has approved $150 million in financing to support Sri Lanka’s reform agenda, aimed at raising investment, improving competitiveness and creating jobs. For exporters, importers, manufacturers and sourcing teams, the package is relevant because it includes reforms tied to trade barriers, investment conditions and energy costs.The financing is for the Sri Lanka Reforms for Growth, Resilience and Openness Development Policy Operation (REGROW DPO), the first in a proposed series of three operations. It follows earlier assistance under the Resilience, Stability and Economic Turnaround (RESET) DPO series and moves the focus from stabilisation towards longer-term growth, the World Bank said in a press release.

The World Bank has approved $150 million financing for Sri Lanka’s REGROW policy operation, the first in a proposed three-part series.
The reforms target lower trade barriers, a better investment climate, and stronger competitiveness, relevant for exporters and sourcing teams.
Budget support also covers financial-sector, state-owned enterprise, power-sector, and women’s employment measures.

The World Bank Board of Executive Directors said the first operation will provide budget support linked to reforms to reduce trade barriers, improve the investment climate and strengthen the financial sector. The programme also supports measures to expand women’s employment, improve state-owned enterprise performance and governance, and enhance power-sector competitiveness to improve services and lower energy costs.

Gevorg Sargsyan, World Bank Group country manager for Sri Lanka said: “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.”

He further said the REGROW DPO supports a shift to a more competitive, transparent and resilient economy.

Fibre2Fashion News Desk