WB cautions possible slowdown in reform efforts due to elections

3 April 2024 09:03 am - 20 - {{hitsCtrl.values.hits}}

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Colombo, April 3 (Daily Mirror) - Sri Lanka has recovered faster than expected from the economic crisis it faced two years ago, however, the World Bank yesterday cautioned that this momentum might be lost due to a possible slowdown in the reform efforts as the island nation gears up for election this year.

World Bank's Senior Country Economist for the Maldives and Sri Lanka Richard Walker told journalists in Colombo that while Sri Lanka has made significant progress in the last year, two downside risks remain, of which one is the upcoming elections.

“…downside risks remain, and there are two risks I want to emphasise. The first one is around the elections this year and the potential we see or the concern we see around policy reversal or policy fatigue, particularly around the reforms that have been implemented,” he said during the launch of the Sri Lanka Development Update: Bridge to Recovery report.

The second downside risk identified by the WB is a prolonged and insufficiently deep debt restructuring which would be a significant drag on the economy.

Daily Mirror reported last week that come October, Sri Lanka will hold Presidential elections. According to a senior political source, President Ranil Wickremesinghe has informed close associates that the Presidential Election will be held as scheduled.

Walker, elaborating on the concerns around elections given that different political parties have been sharing their unique mantra on reforms, pointed out that the World Bank is particularly concerned regarding reform fatigue or reform reversal.

“..it’s this bridge to recovery. The reforms are critical in those areas to sustain and maintain them.

“We’ve said it many times, use this crisis as an opportunity to put Sri Lanka in a much better place as an economy than it had been over many years,” said Richard.

The Sri Lanka Development Update asserted that “constructive” reform implementation needs to continue before and after the upcoming elections in Sri Lanka.

The ongoing adjustment of fiscal and external imbalances has contributed to the initial stabilization of the economy, but it may also adversely affect growth and poverty.

The World Bank noted that in time, however, these broader macroeconomic adjustments will correct the significant imbalances, help regain access to international financial markets, and build the foundation for sustainable growth.

“While the adjustment process may provoke resistance and potential backlash from affected groups and vested interests, it is essential for the country to stay the course on reforms, carefully navigate political and social pressures, and effectively mitigate the impact of the reforms on the poorest and vulnerable,” the World Bank highlighted in its report

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Comments - 20

Nimal Wednesday, 03 April 2024 09:36 AM

Please do not give this wretched government any excuse for postponing elections. People are already intensely frustrated with its performance and the ruthless manner in which taxes and other burdens are heaped on the people. They do not see any noticeable relief coming their way until this merciless regime is chased away and it is only at a presidential election or a general election that the people will be able to do so.

Root Wednesday, 03 April 2024 02:52 PM

This "wretched govt" of RW is the one who saved this country from total anarchy

Eper Wednesday, 03 April 2024 09:47 AM

You cannot bluff the WB as they are well aware of the corruption of our politicians n state sector.We are being saved of starvation because of the massive debts taken by us.

Wiseman Wednesday, 03 April 2024 09:51 AM

Whatever said and done, a new govt of Sri Lanka needs to strengthen local production and exports. Importation of domestic renewable energy products tax free and heavy concessions to elevate the living standards. Break the middleman monopoly and power the farmers etc

Jayantha Wednesday, 03 April 2024 09:52 AM

If red guys comes to power we will have to wait in massive queues again with shortage of fuel and essentials. Non of them have any experience in any industry other than talking. Lol

roni Wednesday, 03 April 2024 10:06 AM

The NPP or SJB will recover all overdue taxes from the unscrupulous businessmen. Then the country would not have to beg and bow to WB and IMF conditions.

Godfather Wednesday, 03 April 2024 04:47 PM

Easily said than done. You cannot turn around something in one day which has been in our system for so many decades. Govt is doing the job

Hero Wednesday, 03 April 2024 04:53 PM

Where were your SJB

Sam Silva Wednesday, 03 April 2024 05:24 PM

So that is how the npp or sjb going to develop the country and all our corruptions and loans that we owe will be solved. Back to miracle of Asia !!

No choice as this Crisis Will Never End Soon Wednesday, 03 April 2024 10:16 AM

This economic crisis will never end anytime soon and will take years as predicted by most world renowned economist. So if the elections takes place this year or next following years, it still will happen during the economic uplift.

Last chance Wednesday, 03 April 2024 10:19 AM

Facts and figures are very different to each other. The figures show the economic recovery while the men in the street struggle to have a one square meal a day.

Wickremasinghe Wednesday, 03 April 2024 10:28 AM

Thank you for the advise. A good excuse for Ranil to delay election.

Premalal Perera Wednesday, 03 April 2024 10:35 AM

So, do they want the election cancelled?

joshua Wednesday, 03 April 2024 11:14 AM

We do not care. Better to have the elections and get rid of the rogues. That will save much more than an election. WB does not seem to know the economics of SL.

johan Wednesday, 03 April 2024 12:01 PM

Reforms are good to temporarily overcome the situation but without financial discipline and stringent control over recurrent expenditure cannot reap the results anticipated.Not forgetting the corruptions and fraud as well.The interim Govt.cannot achieve the desired due to political instability which forces the Govt. only increase the taxes by burdening the masses more and more whereas already 60% of the population consuming one or two meals a day and unable to make ends meet.So there is nothing to praise when entire population is cursing the politicians for the situation.

KD Wednesday, 03 April 2024 01:19 PM

well we know who will screw up all progress- JVP/NPP. Well actually the sri lankan people will be the ones to mess it up again by voting for this incompetent and outdated group.

Gabriella Wednesday, 03 April 2024 05:15 PM

Yes, we should keep people EXPERIENCED in corruption in power, without lifting a finger to rectify the situation. Let’s keep recycling the same crooks. That should work.

Sam Silva Wednesday, 03 April 2024 05:28 PM

Very true We vote for all the crooks to come to power and later blame the government. It goes on and on.

joshua Wednesday, 03 April 2024 09:41 PM

so you want the same rogues to come to power?

Royb Wednesday, 03 April 2024 05:09 PM

Out people know about WB so you please keep away and don"t come advice on economic stability because nothing has recovered under this corrupted leadership.You still think our people are fools to listen to your nonsence. Now our people are wiser to make judgments. You will see stars after an election.

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WB cautions possible slowdown in reform efforts due to elections

Comments - 20

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