October 04, Colombo (LNW): Sri Lanka must undertake sweeping reforms to its energy sector to address persistently high energy costs, the World Bank has cautioned, citing the nation’s vulnerability compared to its regional counterparts.
The call for reform emerged during a series of high-level discussions between a World Bank mission and leading parliamentary oversight committees in Colombo.
The visiting delegation, headed by World Bank Country Manager Gevorg Sargsyan, held separate consultations with several key parliamentary bodies responsible for fiscal oversight and governance. Initial talks were held with Dr Harsha de Silva, Chair of the Committee on Public Finance (CoPF), followed by a joint session involving Dr Nishantha Samaraweera of the Committee on Public Enterprises (COPE), Kabir Hashim of the Committee on Public Accounts (COPA), and Wijesiri Basnayake of the Committee on Ways and Means. Other committee members also took part in the engagements.
According to a statement from the Department of Communication of Parliament, the Sri Lankan delegation expressed gratitude for the World Bank’s sustained support in the country’s development efforts. In turn, World Bank representatives emphasised the pressing need to restructure the energy sector, which continues to operate with significantly higher costs than comparable nations in the region—placing a heavy burden on both the economy and consumers.
Energy was only one aspect of a broader conversation that touched upon the country’s urgent need to modernise its public sector. World Bank officials drew attention to the fact that Sri Lanka hosts one of the largest public workforces in the region, despite offering relatively modest compensation. The institution urged that this imbalance be addressed through improved efficiency, targeted restructuring, and enhanced productivity.
Discussions also delved into key sectors identified as critical for national growth, including ports, logistics, tourism, education, agriculture, and entrepreneurship. Enhancing women’s participation in the workforce, creating employment opportunities, and strengthening mechanisms for poverty alleviation were also highlighted as areas requiring strategic reform.
Of particular note was the conversation surrounding revenue generation and the need for more efficient collection systems. The World Bank underscored the importance of establishing well-designed Public-Private Partnerships (PPPs) as a pragmatic alternative to full-scale privatisation. Delegates presented examples of successful PPP models implemented in other countries, illustrating how such partnerships can contribute to improved service delivery and long-term economic sustainability.
Committee members also briefed the delegation on their respective roles and the legislative tools at their disposal for ensuring government accountability and transparency. Both sides affirmed their commitment to deepening institutional collaboration aimed at propelling Sri Lanka towards a more resilient and inclusive economic future.
Also in attendance at the meetings were Stephan Massing, Senior Operations Officer at the World Bank Group; Victor Anthonypillai, Senior Country Officer at the International Finance Corporation (IFC); and M. Jayalath Perera, Director of Legislative Services and Acting Director of Communications for Parliament.
