World Bank Vice President visits Sri Lanka, reaffirms support to protect people

Wednesday, 1 March 2023 00:30 - - {{hitsCtrl.values.hits}}

World Bank Vice President for South Asia, Martin Raiser speaks during the meeting with President Ranil Wickremesinghe yesterday

World Bank Vice President for South Asia, Martin Raiser, concluded his four-day visit to Sri Lanka yesterday, reaffirming the World Bank’s continued support to help the country navigate economic challenges, implement critical reforms, and chart a path towards a resilient and inclusive recovery.

Raiser met with President and Finance Minister Ranil Wickremesinghe, Secretary of the Treasury, Governor of the Central Bank, Senior Government officials, development partners, and key opinion leaders including members of Sri Lanka’s political opposition, thinks tanks, civil society organisations and academia.

“The people of Sri Lanka have been deeply affected by the macro and debt crisis affecting the country. The depth of the crisis has made it clear that Sri Lanka needs a new development model, but this requires greater confidence in and understanding of the Government’s reforms,” Raiser said.

“Improved communication and consistent implementation of the reform and adjustment program is urgent, as is faster international debt relief and financial support to ensure people don’t lose patience and the opportunity for a change isn’t lost,” he added.

During the visit, Raiser discussed progress on reforms to transform economic governance in Sri Lanka through strengthened institutional and fiscal oversight and better debt management. He also stressed that greater transparency, improved governance, support for job creation, as well as better targeted protection for the poorest are critical to garner and sustain public support for reforms.

Raiser also visited North Central and North Western Provinces to observe first-hand World Bank-funded projects in the health and agriculture sectors, and to engage with a broad range of stakeholders on Sri Lanka’s development needs.

The World Bank was among the first to respond to Sri Lanka’s economic crisis. The Bank’s emergency response repurposed $ 325 million from existing projects to protect the poor and vulnerable from the worst impacts of the crisis.

In December, the Bank approved Sri Lanka’s request to access concessional financing from the International Development Association (IDA). This type of financing, offered at low interest rates, will enable the country to implement its Government-led reform program to stabilise the economy and protect the livelihoods of millions of people facing poverty and hunger.

The World Bank Group has started preparing a new Country Partnership Framework for the next four years (2023-2026) with a focus on private sector led job creation, inclusion, preservation and strengthening of human and natural capital, improved governance, and a shift towards a greener growth path.