Lanka has undertaken painful reforms to get out of darkest hours
“Over the past two years, Sri Lanka has undertaken painful but necessary reforms and these have been instrumental in seeing the country out of its darkest hours.”
Continuity of reforms are critical to ensure that these gains are permanent and longstanding opined outgoing World Bank Country Director for Maldives, Nepal and Sri Lanka, Faris Hadad Zervos, World Bank Country Manager for Maldives and Sri Lanka, Chiyo Kanda and International Finance Corporation Country Manager for Maldives and Sri Lanka, Alejandro Alvarez de la Campa while speaking about the highlights of their tenure in Colombo.
“Macroeconomic stability and continuity of policy direction is the cornerstone of growth.”
With a debt-to-GDP ratio that overshadows the economy, Sri Lanka must continue with its reform efforts to safeguard fiscal health and expedite growth to further reduce debt risks. A history of robust tax collection demonstrates the potential to rebuild fiscal stability, enabling investments in infrastructure and human capital.
Despite commendable progress in economic stabilisation over the last two years, the journey ahead for Sri Lanka will not be smooth and easy. “With elections on the horizon, we are hopeful that the people of Sri Lanka will continue to choose the path that leads to a country with better prospects.”
They also identify that Sri Lanka’s true potential for transformative change lies in its human capital the perseverance and unbreakable spirit of the Sri Lankan people. “Private sector job creation through investment and trade is essential.”
They also said that safeguarding the poor and vulnerable remain paramount.The government’s strides in social assistance, particularly the Aswesuma program, are commendable and represent a new beginning in the country’s social protection system.
Emulating East Asia’s economic playbook, Sri Lanka can liberalize trade, incentivize exports, and integrate into global value chains. “This could unleash a US$10 billion export potential, spurring job creation and sustainable growth.”
Reforms in energy and agriculture sectors are critical for a resilient recovery and to this effect investing in the country’s future in renewable energy and the adoption of climate-smart agricultural practices can enhance productivity and sustainability. Governance and anti-corruption measures are key to building trust and efficiency. “Modernising public institutions and embracing digital solutions can streamline services, enhance transparency and fortify the fight against corruption.”
However given the immense potential evident in Sri Lanka, the country can achieve so much more to secure a brighter future for its people. They recalled that the two joined their posts in 2020, at the height of the COVID-19 pandemic with no opportunity to meet government clients, partners or our own staff in-person for several months.
“One of us joined amid Sri Lanka’s economic crisis in 2022, which also came with countless challenges. Sri Lanka’s health system managed the COVID-19 pandemic better than most developed countries could and the country has since been working tirelessly to turn the economic crisis into an opportunity for growth.”
From modernising agriculture and preparing farmers to respond to climate change, to supporting the private sector with critical financing to help small businesses and sustain jobs, the World Bank Group continued in its stride, contributing to many facets of Sri Lanka’s development with the aim of improving the lives of Sri Lankan people.
“Our collective efforts at fostering inclusive, sustainable and resilient growth in the country have both been challenging and rewarding and it has been an honor to lead our talented teams in these endeavors. As we bid farewell, we carry with us the stories of Sri Lanka’s resilience and resolve.”
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