Economics & Development

The development objective of the Sri Lanka Reforms for Growth, Resilience and Openness (REGROW) Development Policy Operation for Democratic Socialist Republic of Sri Lanka is to boost investment and create jobs by supporting structural reforms that enhance competitiveness and improve economic governance. The operation, first in a programmatic series, works in two areas: enhancing competitiveness by lowering barriers to trade through a four year phase out of para tariffs under the National Tariff Policy, modernizing the investment climate via a new Investment and Trade Commission law and regulations, strengthening the financial sector with a unified Rescue, Rehabilitation and Insolvency Act for corporate and personal cases, and removing legal barriers to women’s work through amendment of the Shop and Office Employees regulations and broader labor standards reform; and improving economic governance by tightening transparency and discipline of tax incentives through amendments to the Strategic Development Projects Act and a forthcoming tax expenditure framework and Tax Administration Procedures Law, strengthening state owned enterprise oversight via a standardized credit risk assessment methodology and a new Public Commercial Enterprises Management framework with a Holding Company, increasing private participation and efficiency in the power sector through a national competitive procurement manual for energy projects, and upgrading the evidence base for policymaking with a new National Statistics Act and a National Statistical Council. The operation intends to reduce average import duties, raise foreign direct investment by Board of Investment (BOI) registered companies, resolve insolvency cases in court, increase women’s formal employment in hospitality, lift income tax revenue as a share of Gross Domestic Product, transfer major state owned enterprises to the Holding Company or market, mobilize private investment in energy, and improve the Statistical Performance Indicator (SPI), thereby supporting private sector led growth, job creation, and resilience.

The development objective of the Inclusive Growth Development Policy Operation for Ethiopia is to support the Government of Ethiopia’s efforts to: (i) strengthen financial intermediation, fiscal sustainability, and economic management; (ii) reduce barriers to competition and private sector investment; and (iii) increase economic and social inclusion. The project development objective (PDO) reflects the operation’s central emphasis, that macroeconomic stabilization can be more enduring in Ethiopia by reducing recurring fiscal and external pressures, opening space for private investment and job creation, and strengthening access and opportunity for households and groups most exposed to shocks. The three pillars therefore link near-term stabilization with the structural and inclusion reforms needed for the transition to take hold.

Honduras has a time-bound opportunity to capitalize on its demographic dividend — with 65 percent of the population under age 29 — to advance its competitiveness, productivity, and job creation agenda. Education and skills development are not simply social expenditures: they are among the foundations of private sector growth, formal employment expansion, and a more sustainable tax base. This note, prepared by the World Bank education team to support the new administration, identifies priority reforms the Government of Honduras may wish to pursue to translate this window into lasting economic gains.

On April 14, 2026, the Inspection Panel received a Request for Inspection related to the World Bank-financed Tanzania: Msimbazi Basin Development Project. The Request was submitted by two individuals on behalf of 412 persons from Dar es Salaam, Tanzania, who asked that their identities remain confidential due to concerns about retaliation. The Request alleges harm caused by the improper implementation of compensation and resettlement processes, including loss of land, building rights, and livelihoods without lawful compensation as required under the Resettlement Action Plan and applicable standards. It further claims that affected persons were not compensated for land, that flat-rate compensation does not reflect actual losses, that compensation for structures failed to meet replacement cost standards, and that there was inadequate consultation and grievance redress. The Request also states that some affected households remain in the Project area due to unresolved compensation issues and now face worsening living conditions and economic hardship. On April 23, 2026, the Panel acknowledged receipt of the Request and issued a Notice of Receipt, informing the Requesters and Bank Management. Following initial due diligence, the Panel determined that the Request meets the admissibility criteria and, therefore, registered the Request on May 29, 2026.

Ethiopia is navigating a challenging transition marked by macroeconomic reforms, exposure to external shocks, climate stress, conflict and displacement, and persistent human capital and service delivery gaps. In the coming years, the World Bank Group will focus on enabling a private sector-led growth model that creates more and better jobs by strengthening capable economic institutions, deepening macroeconomic stabilization, improving the business environment, and safeguarding essential social services. Support will prioritize reforms that enhance exchange rate and monetary policy credibility, improve fiscal sustainability, and increase regulatory predictability in areas such as competition, land and customs administration, and public accountability. The Bank will help lower trade and logistics costs through customs modernization, corridor efficiency, multimodal integration, and pro-competition measures, while improving energy and digital infrastructure reliability, advancing Mission 300, and widening market access. Finance for productive firms will be expanded through capital market development, stronger credit infrastructure and risk pricing, and instruments that crowd in private capital, with a focus on small and medium enterprises and women and youth-owned businesses. Sector engagements will emphasize agribusiness, light manufacturing, domestic pharmaceuticals, and complementary housing, operationalized through platforms such as AgriConnect and AIM2030 to strengthen value chains, standards, procurement, and firm upgrading. To build a skilled workforce, the Bank will support stronger foundational learning, industry-linked skills pathways, and systems that align incentives and data with employability and private demand. Health and nutrition investments will expand access to quality primary care, bolster resilient delivery systems, promote nutrition-sensitive agriculture, and improve water, sanitation, and hygiene, particularly in underserved, climate-vulnerable and conflict-affected areas. Cross-cutting priorities include resilience to climate and fragility risks, regional integration through AfCFTA, gender inclusion, and adaptive engagement that adjusts the mix and geographic focus of support as conditions evolve, with IDA, IFC, and MIGA mobilizing private solutions where reforms enable competitive markets.