Accelerate second-gen reforms to secure durable growth, says World Bank

7% GDP growth forecast by President AKD in 2026 Budget speech “absolutely achievable,” says World Bank Country Chief Stresses need to dismantle trade barriers, improve productivity and mobilise private capital

- 

SRI Lanka must shift from post-cisis stabilisation to fast, investment-led growth by dismanthing trade barriers, improving productivity and mobilising private capital, World Bank Country Manager for Sri Lanka and Maldives Gevorg Sargsyan told the Sri Lanka Economic and Investment Summit organised by the Ceylon Chamber of Commerce yesterday.

In a wide-ranging presentation, Sargsyan said the country had made tremendous achievements in stabilising the economy, but warned that growth remained too weak to ease fiscal pressure or reduce poverty.

"Stability has been broadly achieved, but sustaining it requires a new policy environment,’he sai, “Sri Lanka cannot rely on austerity alone. Faster growthis the only path that reduces the need for painful fiscal measures”

He opened by acknowledging the national crisis triggered by recent extreme weather. "My heart goes out tall SriLankans affected by the devastating disaster. The World Bankhas already redirected its support toward urgent recovery needs,’he sid.