Sep 13, 2017

WB suggests Sri Lanka to speed up vital reforms

Sri Lanka has to overcome several risks in bolstering its economy’s competitiveness and ability to pursue an export-led growth model, World Bank sources said.

Among the risks identified by the World Bank report are delays in implementing structural revenue measures, slower than expected improvement in tax administration, less favorable growth in the global economy and faster than expected global commodity price rises.

In addition, faster implementation of several vital reforms, identified by the government, such as those affecting state-owned enterprises like Sri Lankan Airlines and measures to strengthen accountability and transparency are crucial. Additional urgent reforms such as improving the ease of doing business in Sri Lanka and trade facilitation are designed to address the issue of the economy’s weak competitiveness.

The country also attracts a much lower volume of Foreign Direct Investment than peer economies. “Sri Lanka has an opportunity to move to new sources of growth and jobs by opening up to trade and diversifying its economy” said Ralph Van Doorn, Senior Country Economist emphasized that moving ahead with measures to increase exports and fiscal revenue should give Sri Lanka the means to improve the lives of the poor.