The World Bank Group has approved US$150 million in financing to support Sri Lanka’s ongoing economic reform programme aimed at strengthening growth, improving competitiveness, and creating new employment opportunities.
The funding is part of the Sri Lanka Reforms for Growth, Resilience and Openness Development Policy Operation (REGROW DPO), which is the first in a planned series of three operations. It builds on earlier World Bank support under the Resilience, Stability and Economic Turnaround (RESET) programme, marking a shift from short-term stabilization toward long-term structural economic growth.
The REGROW initiative is designed to support government reforms that improve economic governance, reduce trade barriers, and create a more attractive environment for private investment. It also focuses on strengthening the financial sector and improving overall market competitiveness to encourage private-sector-led development.
Key policy measures supported by the programme include improving the investment climate, enhancing the governance of state-owned enterprises, expanding women’s participation in the workforce, and increasing competitiveness in the energy sector to help reduce costs and improve service delivery.
World Bank officials emphasized that Sri Lanka has made progress in stabilizing its economy and now needs deeper reforms to unlock private investment and generate high-value exports and sustainable jobs. The initiative is expected to support the country’s transition toward a more transparent, resilient, and competitive economy.
The World Bank Group has maintained a long-standing partnership with Sri Lanka for over 70 years and currently supports multiple development projects across sectors such as education, health, energy, transport, agriculture, and social protection. The International Finance Corporation (IFC), the private sector arm of the group, has also committed significant financing to support private sector growth in the country between 2021 and 2026.
