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USD 200 mn more from World Bank to support economic reforms here
The World Bank and the government yesterday signed the Second Resilience, Stability, and Economic Turnaround (RESET) Development Policy Operation (DPO) for $200 million. This is the second operation in a two-part series that began in 2022. The first operation, totaling $500 million, was disbursed in June and December 2023.
The World Bank has, in a statement, said that 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.
It said: 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.
Central to the operation is the protection of the poor and vulnerable. This will be achieved by revitalizing the social protection system to help the poor and vulnerable cope with the lasting effects of the economic crisis and price adjustments resulting from macro-fiscal reforms. Enhancing women’s empowerment and reducing gender discrimination to promote higher and more sustainable growth in Sri Lanka is another key feature.
“We are very proud of the excellent collaboration with the authorities and their steadfast dedication to addressing the needs of the Sri Lankan economy. This operation represents support for critical reforms over the past two years, which were central to economic stabilization,” said David Sislen, World Bank Regional Country Director for Maldives, Nepal, and Sri Lanka. “Moving forward, Sri Lanka will now have the opportunity to focus on maintaining its hard-earned stability and investing in the private sector to transform the national growth trajectory. Doing so is vital to boosting economic growth, creating jobs, and ensuring that everyone benefits from a stronger, more resilient economy.”
The first operation in the RESET DPO series, which provides budget support to the Government of Sri Lanka, was approved by the World Bank’s Board of Directors on June 28, 2023. The first operation supported foundational reforms to restore macroeconomic stability, mitigate impacts on the poor and vulnerable, and support an inclusive, private sector-led recovery. Specifically, it facilitated the establishment of a new social welfare benefit payment scheme with improved targeting and adequate budget allocation for its first year of implementation, initiated the simplification of the tariff structure by reducing para-tariffs to enhance export competitiveness, and strengthened Sri Lanka’s deposit insurance scheme and problem bank resolution framework to boost confidence and stability in the banking sector. The DPO support is contingent on prior actions or milestones that need to be completed before the funding is released. The funding is released after assessing the government’s satisfactory progress in carrying out the broader macroeconomic and reform programme.
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Heat index is likely to increase up to ‘Caution level’ at some places in Eastern and North-central provinces and Monaragala, Hambantota, Jaffna, Mullaittivu, Kilinochchi, Vavuniya and Kurunegala districts
Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre of the Department of Meteorology at 3.30 p.m. 26 April 2025, valid for 27 April 2025.
The public are warned that the Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in Eastern and North-central provinces and Monaragala, Hambantota, Jaffna, Mullaittivu, Kilinochchi, Vavuniya and Kurunegala districts.
The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.
Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.
ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated. Dress: Wear lightweight and white or light-colored clothing.
Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.
Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath represented Sri Lanka at the funeral of Pope Francis on Saturday [26]
Former President Ranil Wickremesinghe will appear before the Commission to Investigate Allegations of Bribery and Corruption (CIABOC) tomorrow (28) over the statement he had made on MP Chamara Sampath Dassanayake, his lawyers have informed the Commission.
Accordingly, the former President will appear before the commission at 9.30am on Monday.
Wickremesinghe was initially summoned by the Commission to CIABOC on April 17 in relation to a statement he had made about the corruption case filed against NDF (gas cylinder) MP Dassanayake.
In response to the previous summons, Wickremesinghe had indicated that he is prepared to appear before the commission but requested a different date citing that his lawyers will not be available in Colombo during the New Year holiday period.
Accordingly, a new was provided and Wickremesinghe requested to appear before the commission at 09.30 a.m. on Thursday (April 25).On April 7, Wickremesinghe had said that MP Dassanayake withdrew the fixed deposits belonging to the Uva Provincial Council, over which he is now facing corruption charges, in accordance with a circular issued during Wickremesingher’s tenure as Prime Minister.
The former President questioned whether the MP’s arrest over the matter was in response to Dassanayake’s vocal criticism of the government in parliament.
The sitting MP is currently in remand custody for allegedly misappropriating a sum of Rs. 1 million of the Uva Provincial Council in 2016.
He was taken into custody on March 27, over three separate corruption-related cases.
The Colombo Magistrate’s Court previously granted bail in the cases filed against him but he remains in remand custody due to an order issued by the Badulla Magistrate’s Court.
According to the CIABOC, Dassanayake had solicited funds from three state banks, claiming they were intended to provide bags for preschool children in the province.
Two banks complied, granting him Rs. 1 million and Rs. 2.5 million, which were later transferred to his foundation account.
However, when a third bank refused to provide funds, Dassanayake reportedly retaliated by withdrawing the Uva Provincial Council’s fixed deposits from that institution.The CIABOC filed a case against the MP, citing the government incurred a financial loss of Rs. 17.3 million due to his actions.
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