INSUBCONTINENT EXCLUSIVE:
The World Bank and the Government of Sri Lanka today signed the Second Resilience, Stability, and Economic Turnaround (RESET) Development
Policy Operation (DPO) for $200 million
This is the second operation in a two-part series that began in 2022
The first operation, totaling $500 million, was disbursed in June and December 2023.The Second RESET DPO aims to support reforms that
resilience and fostering an equitable economy.The operation focuses on improving economic governance to create a stable macroeconomic
environment and restore investor confidence through key reforms
These include enacting a new Public Debt Management Act to better inform borrowing decisions, implementing tax administration reforms to
boost revenues, and addressing financial sector risks by tightening single borrower limits and improving mechanisms for resolving
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.Central to the operation is the protection of the poor and vulnerable
This will be achieved by revitalizing the social protection system to help the poor and vulnerable cope with the lasting effects of the
economic crisis and price adjustments resulting from macro-fiscal reforms
Sislen, World Bank Regional Country Director for Maldives, Nepal, and Sri Lanka
sector to transform the national growth trajectory
