World Bank releases US $ 250mn for Sri Lanka as budget support

The World Bank yesterday released the second tranche of the US $ 500 million Sri Lanka Resilience, Stability and Economic Turnaround (RESET) Development Policy Operation (DPO), considering the continued satisfactory progress made by the government with the reform programme.
The RESET DPO, which provides budget support to the government, was approved on June 28, 2023. 
The first tranche of the RESET DPO for US $ 250 million was released in June 2023, upon the completion of seven reform prior actions across three pillars—economic governance,  growth and competitiveness and protecting the poor 
and vulnerable.

According to a World Bank statement, this is the first in a series that supports foundational reforms to restore macroeconomic stability, mitigate the impacts on the poor and vulnerable and support an inclusive, private sector-led recovery.
It also said the loan was contingent upon fulfilling prior actions.
The World Bank further said the government has been able to make satisfactory progress in carrying out the broader reform programme while the macroeconomic policy framework remains adequate.
It also recognised the enacting of the Banking (Special Provisions) Act, which is aimed at strengthening the deposit insurance and problem bank resolution framework.