The World Bank has approved US$150 million in financing to support Sri Lanka’s ongoing economic reform programme, reinforcing international confidence in the country’s recovery while helping to stimulate private investment, improve competitiveness, and create sustainable employment opportunities. The funding, approved by the World Bank’s Board of Executive Directors under the Sri Lanka Reforms for Growth, Resilience and Openness (REGROW) Development Policy Operation, aims to strengthen the foundations for long-term, private sector-led economic growth.

According to the World Bank, the programme will support reforms to enhance fiscal sustainability, improve the investment climate, facilitate trade, expand access to finance, strengthen governance, and promote greater economic resilience. The initiative aligns closely with Sri Lanka’s broader reform agenda supported by the International Monetary Fund (IMF) and is expected to encourage domestic and foreign investment while creating better employment opportunities.

Gevorg Sargsyan, World Bank Group Country Manager for Sri Lanka and the Maldives, emphasised that Sri Lanka has made significant progress in stabilising its economy and highlighted the importance of sustaining reforms that unlock private investment, facilitate high-value exports, and generate quality jobs. The World Bank also noted that continued policy consistency will be essential to maintaining investor confidence and ensuring inclusive economic growth.

The financing follows Sri Lanka’s recent return to upper-middle-income country status and complements the World Bank Group’s new Country Partnership Framework, which seeks to support the country’s ambition of achieving higher growth through private sector development, improved competitiveness, and stronger institutional capacity. The latest approval signals continued international backing for Sri Lanka’s economic transformation and underscores the critical role of structural reforms in building a more resilient, competitive, and prosperous economy.