The government of Sri Lanka has received the second installment of the US$500 million Sri Lanka Resilience, Stability and Economic Turnaround (RESET) Development Policy Operation (DPO) from the World Bank. This funding is part of a series of support aimed at restoring macroeconomic stability, mitigating the impact on vulnerable groups, and promoting a private-sector-led recovery. The release of this tranche is contingent upon the government’s satisfactory progress in implementing the reform program, maintaining a sound macroeconomic policy framework, and enacting legislation to strengthen the deposit insurance and problem bank resolution framework. The World Bank emphasizes the importance of continued momentum in economic and structural reforms to stabilize the economy and unlock its potential for private sector-led growth. The RESET DPO is aligned with the support provided by other international organizations such as the IMF and ADB. The first tranche of US$250 million was released in June 2023 after the government successfully completed seven reform actions across various sectors.
