World Bank stresses urgent energy sector reforms in Sri Lanka

The World Bank has emphasized the urgent need for energy sector reforms in Sri Lanka, warning that the country continues to bear significantly higher energy costs than others in the region. 

This was highlighted during consultation meetings held between a World Bank delegation led by Country Manager Gevorg Sargsyan and key parliamentary finance oversight committees.

The delegation first met with Dr. Harsha de Silva, Chair of the Committee on Public Finance (CoPF), and its members, followed by a combined consultation session with Dr. Nishantha Samaraweera, Chair of the Committee on Public Enterprises (COPE); Kabir Hashim, Chair of the Committee on Public Accounts (COPA); and Wijesiri Basnayake, Chair of the Committee on Ways and Means, along with members of their respective committees.

Committee Chairs expressed their appreciation to the World Bank for its continued support to Sri Lanka’s development over the years, the Department of Communication of Parliament stated.

During the consultations, World Bank officials stressed the urgent need for energy sector reforms, noting that Sri Lanka continues to face significantly higher energy costs than other countries in the region. Developments in the ports and logistics sector were also discussed as critical to national growth.

The World Bank delegation further underscored the need for rightsizing the public sector and improving overall productivity, pointing out that Sri Lanka maintains one of the largest public sector workforces with relatively low wage levels compared to peer countries, the statement said.

Committee members briefed the World Bank officials on the mandates and oversight functions of their respective committees. Discussions also focused on key areas for reform and growth, including revenue collection improvement, job creation, poverty eradication, enhancing women’s participation in the economy, and strengthening sectors such as tourism, education, agriculture, and entrepreneurship.

The discussions also highlighted the importance of establishing efficiently run Public-Private Partnerships (PPPs) as an alternative to full privatization. World Bank officials shared successful international case studies where well-structured PPPs contributed to enhanced service delivery and sustainable economic development.

These consultations underscore the commitment of both the Parliament of Sri Lanka and the World Bank to foster stronger institutional collaboration and drive forward sustainable economic development, it added.

Stephan Massing, Senior Operations Officer, World Bank Group, Victor Anthonypillai, Senior Country Officer, IFC, M. Jayalath Perera, Director Legislative Services and Director Communication (Acting) of Parliament were also present in these meetings.