The World Bank Country Director for Maldives, Nepal, and Sri Lanka, Faris Hadad-Zervos, has commended Sri Lanka's efforts in addressing its economic crisis. Speaking at an event in Colombo on Tuesday (18 July), Faris praised the country's ongoing program and stressed the importance of keeping the public well-informed.

"The journey has seen significant progress, but there is still a long way to go," he stated, acknowledging the country's economic recovery phase. However, he emphasized that challenging decisions lie ahead, and it is crucial to make them wisely to avoid revisiting similar hardships.

Certain "difficult decisions" have already been taken, but Faris asserted that now is the time to take further action and get it right to avert future crises. He underlined the necessity for "deep governance reforms" to address core issues that led to the buildup of unfavorable policies over several years, not limited to a few cycles.

Highlighting the significance of transforming economic governance, Faris explained, "What happened in Sri Lanka was not a result of one or two years, but rather the culmination of policies that didn't align with Sri Lanka's strengths."

In support of Sri Lanka's recovery efforts, the World Bank's Board of Directors recently approved a new four-year strategy. Additionally, the island received USD 700 million in financial aid for the year 2023. Out of this sum, USD 500 million is allocated for budget support and reforms, while USD 200 million is dedicated to bolstering social protection systems.

He expressed the World Bank's commitment to provide further resources, particularly for the financial sector, acknowledging the positive impact of key reforms already implemented by Sri Lanka.