Govt signs for US $ 200 million from WB, part of series initiated under RW govt.

Colombo, October 07 (Daily Mirror)- The World Bank and the government signed the second Resilience, Stability, and Economic Turnaround (RESET) Development Policy Operation (DPO) for $200 million which is the second operation in a two-part series that began in 2022 during former President Ranil Wickremesinghe's tenure.

The first operation, totaling $500 million, was disbursed in June and December 2023.

The Second RESET DPO aims to support reforms that improve economic governance, enhance growth and competitiveness, and protect the poor and vulnerable, helping to build Sri Lanka’s 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 non-performing loans. 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.