News
Delay in energy sector reforms: WB warns SL, calls for pruning of public service
The World Bank has warned parliament over Sri Lanka’s continuing failure to implement urgently required energy sector reforms. The WB has pointed out that for want of energy sector reforms, the country experienced significantly higher energy costs than other countries in the region.
The World Bank delegation has also underscored the need for pruning the public sector and improving overall productivity, pointing out that Sri Lanka maintains one of the largest public sector workforces with relatively low wage levels compared to peer countries.
The WB has made its position in respect of national economy at a recent joint meeting with the Committee on Public Enterprises (COPE), Committee on Public Accounts (COPA) and Committee on Ways and Means (COWM), parliament sources said.
The WB team led by Country Manager Gevorg Sargsyan had discussed the issues at hand with Dr. Harsha de Silva, Chair of the Committee on Public Finance (CoPF) and its members. Subsequently, the WB team had what parliament sources called a combined consultation session with COPE Chair Dr. Nishantha Samaraweera, COPA Chair Kabir Hashim and COWM Chair Wijesiri Basnayake along with members of the respective committees.
WB Country Manager Gevorg Sargsyan stressing a point
Committee Chairs expressed their appreciation to the World Bank for its continued support to Sri Lanka’s development over the years.
During the consultations, WB team has emphasized the responsibility on the part of the government address urgently needed energy sector reforms, develop ports and logistics sector and rightsizing the public sector.
Committee members briefed the World Bank officials on the mandates and oversight functions of their respective committees. Discussions also focused on key areas for reform and growth, including revenue collection improvement, job creation, poverty eradication, enhancing women’s participation in the economy, and strengthening sectors such as tourism, education, agriculture, and entrepreneurship.
The discussions also highlighted the importance of establishing efficiently run Public-Private Partnerships (PPPs) as an alternative to full privatization. World Bank officials shared successful international case studies where well-structured PPPs contributed to enhanced service delivery and sustainable economic development.
These consultations underscore the commitment of both the Parliament of Sri Lanka and the World Bank to foster stronger institutional collaboration and drive forward sustainable economic development.
Mr. Stephan Massing, Senior Operations Officer, World Bank Group, Victor Anthonypillai, Senior Country Officer, IFC, M. Jayalath Perera, Director Legislative Services and Director Communication (Acting) of Parliament were also present in these meetings.
As per the provisions of section 51 of the Public Finance Managaement Act No. 44 of 2024, the public should be issued with a report on the final budgetary situation for each year and, the report is then published in the official website of the Ministry of Finance, Planning and Economic Development.
Thereby the report has to be submitted to the Parliament. The final budgetary situation report (Annual Report) – 2025 has been prepared by the Ministry of Finance, Planning and Economic Development and published. The report contains the Public Finance Policy, strategies and challenges, economic trends in 2025, macro – economic and socio – economic indicators covering all sectors of the economy as well as description on the global economic growth.
Furthermore, it accompanies a detailed description government revenue and expenditure, cash flow management, financing the budget deficit and the loan structure.
Accordingly, the Cabinet of Ministers approved the resolution furnished by the President in his capacity as the Minister of Finance, Planning and Economic Development to submit the Report on the Final Budgetary Condition (Annual Report) – 2025 to Parliament.
Business
Cabinet nod to accept increased Loan Grant provided by the Asian Development Bank under Policy Based Loan Facilities – 2026
Approval of the Cabinet of Ministers was granted at their meeting held on 16.03.2026 to obtain United States Dollars 380 million from the policy – based loan facilities of the Asian Development Bank in the year 2026.
United States Dollars 100 million out of it is allocated for Trade, Investment and Industries Development Programme – Sub Programme 1. However, amidst the economic uncertainty resulting from the current Middle East crisis and the climatic tragedies, the Asian Development Bank has agreed to assist
by increasing a supplementary financing package of United States Dollars 100 million so that it will beMincreased up to United States Dollars 200 million.
Accordingly, the Cabinet of Ministers approved the resolution furnished by the President in his capacity as the Minister of Finance, Planning and Economic Development to take further measures to obtain the said loan grant.
News
Submission of Revenue Protection Order Prepared under the Provisions of the Revenue Protection Act No. 19 of 1962 to the Parliament for its approval.
Approval of the Cabinet of Ministers was given at the meeting held on 23.02.2026 to impose the custom import duty amounts under four (04) categories as 0%, 10%, 20%, and 30% which had been executed only under three (03) categories in order to increase the target export income of the country, to execute the
recommendations of the national customs duty policies committee, and to implement new national sub division customs codes for promoting the local agricultural and industrial sector.
Imposing provisions in relation to the above, the Revenue Protection Order – No. 01/2026 under the Revenue Protection Act No. 19 of 1962 has been published in the extraordinary gazette notification No. 2478/03 of 03.03.2026.
Accordingly, the Cabinet of Ministers approved the resolution furnished by the President in his capacity as the Minister of Finance, Planning and Economic Development to submit the said revenue protection order to Parliament for its concurrence.
Report on the Final Budgetary Condition (Annual Report) – 2025 submited to parliament
Cabinet nod to accept increased Loan Grant provided by the Asian Development Bank under Policy Based Loan Facilities – 2026
Submission of Revenue Protection Order Prepared under the Provisions of the Revenue Protection Act No. 19 of 1962 to the Parliament for its approval.
Resettlement of unauthorized settlers affected by the Land Acquisition process for the implementation of Phase III of the Baseline Road Extension Project
Cabinet approves project to modernize school hostel facilities during the 2026–2028 period at an estimated cost of Rs. 1,008 million
New National Action Plan for Human-Elephant Conflict Management to be drafted
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