The World Bank has signed a $200 million agreement with the Government of Sri Lanka for the Second Resilience, Stability, and Economic Turnaround (RESET) Development Policy Operation (DPO). This follows the initial $500 million disbursed in 2023 as part of a two-part series aimed at strengthening the country’s economic framework.

The Second RESET DPO focuses on enhancing economic governance, promoting growth, and protecting vulnerable populations. Key reforms include the introduction of a new Public Debt Management Act, tax administration improvements, and measures to mitigate financial sector risks. Additionally, it aims to improve telecommunications and electricity services, enhance export competitiveness by reducing customs duties, and revitalize the social protection system.

David Sislen, World Bank Regional Country Director, emphasized the importance of collaboration with Sri Lankan authorities and the critical nature of these reforms for economic stabilization. He noted that this support will enable Sri Lanka to focus on sustaining stability and fostering private sector investment, essential for driving growth and creating jobs.