By Navigating Sri Lanka’s SOE Reforms Amidst Election Fever: Insights from the World Bank
With Sri Lanka’s elections looming, concerns arise over potential policy reversals, particularly in the realm of state-owned enterprises (SOEs), according to a World Bank official.
Richard Walker, Senior Country Economist for the Maldives and Sri Lanka, highlighted the World Bank’s apprehensions surrounding SOE reforms, noting slower-than-expected progress despite significant macroeconomic strides post-crisis.
Walker emphasized the need for a clearer framework to enhance governance and explore private sector involvement, underscoring diverging opinions on public sector ownership.
While engaging with political parties to grasp diverse viewpoints on SOE reforms, Walker cautioned against premature privatization, stressing the importance of enhancing governance and performance first.
Up Coming Elections
As Sri Lanka gears up for elections, slated between September and October, the prospect of policy fatigue or reversal looms large, compounded by ongoing economic reforms.
Acknowledging progress, Walker emphasized the need for sustained commitment to reforms, cautioning against setbacks that could hinder recovery and prosperity.
Chiyo Kanda, World Bank Country Manager for the Maldives and Sri Lanka, emphasized effective communication to garner support for reforms, recognizing the challenge posed by painful adjustments.
While policy outcomes remain uncertain, the Bank advocates for reinforcing communication efforts to underscore the importance and interconnectedness of ongoing reforms.
Despite electoral dynamics, the Bank underscores the importance of institutional resilience and regulatory frameworks to anchor reforms, safeguarding against potential setbacks.
In navigating Sri Lanka’s economic landscape amidst election fervor, the World Bank underscores the imperative of steadfast commitment to reforms, advocating for clarity, resilience, and effective communication to sustain progress.
