Sri Lanka Second Resilience, Stability and Economic Turnaround Development Policy Operation

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The development objective of the Second Resilience, Stability, and Economic Turnaround Development Policy Operation for Sri Lanka is to support foundational reforms that restore macroeconomic stability and sustainability, mitigate the impact of current and future shocks on the poor and vulnerable, and support an inclusive and private-sector-led recovery and growth path. This will be achieved through three pillars aimed at: (i) improving economic governance through better fiscal and debt management, improving tax policy and administration, and addressing financial sector risks; (ii) enhancing growth and competitiveness through regulatory reforms, institutional restructuring and increasing competition in core sectors (i.e., electricity and broadband), and reforms to the trade regime; and (iii) protecting the poor and vulnerable through the rolling out of a new Welfare Benefit Payment Scheme (WBPS) and reducing gender discrimination. The operation supports results areas in the World Bank’s corporate scorecard related to macroeconomic and fiscal management, protecting the poorest, digital connectivity, and providing affordable and sustainable energy.