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                                             Sri Lanka

                          Country Partnership Strategy Progress Report

                                           Chair Summary*

                                            April 22, 2014


       The Executive Directors discussed the joint IBRD/IDA/IFC Country Partnership Strategy
(CPS) Progress Report for Sri Lanka for FY13-16. (R2014-0052[IDA/R2014-0091, IFC/R2014-
0066]). Directors commended Sri Lanka for the country’s positive performance in terms of
economic growth, poverty reduction and social indicators.

        Directors reiterated their support for the CPS’ existing areas of engagement: facilitating
sustained private and public investment; supporting structural shifts in the economy; and
improving living standards and social inclusion. They welcomed the emphasis being placed on
addressing the long-term structural development challenges facing Sri Lanka as it transitions to
an upper middle income country, as well as the continued emphasis on inclusive growth. Broad
support was expressed for the flexible approach to programming moving forward, as guided by
the principle of selectivity, the objective of transformative impacts and the twin goals of shared
prosperity and reducing extreme poverty.

        Directors expressed broad support for the additional strategic area of engagement
introduced in the Report: increasing resilience to disasters and climate change. Directors
emphasized the need to balance the new pillar with other areas already on the development
agenda, particularly with regard to private sector development. They also supported the program
to assist Sri Lanka in increasing its physical and fiscal resilience to climate and disaster risk, and
encouraged the Bank to draw and share lessons through South-South cooperation with other
countries facing similar challenges.

        Directors noted that additional efforts will be needed to address gender equity and reduce
the incidence of malnutrition. They also underscored the importance and urgency of up-dating
poverty data and statistical analysis, in order to confirm recent trends and inform the selectivity
of future programming decisions. Looking ahead, Directors encouraged continued close
collaboration between the World Bank and IFC, and with other development partners more
broadly.




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*This summary is not an approved record.