<div><span style="font-size: 1rem;"><b>Sri Lanka's economy is expected to grow by 1.7 percent in 2024 after contracting by 3.8 percent in 2023, the World Bank said in its twice-a-year update on Tuesday.</b></span><br></div><div><br></div><div>The World Bank said that the outlook is clouded with uncertainty and that growth prospects depend on progress with debt restructuring and the implementation of critical structural reforms.</div><div><br></div><div>The World Bank released on Tuesday its latest Sri Lanka Development Update, Mobilizing Tax Revenue for a Better Future, saying that improved revenue mobilization is critical to Sri Lanka's return to macroeconomic stability.</div><div><br></div><div>A government-led tax reform package has been under implementation since May 2022, which includes the introduction of new taxes, a wide range of adjustments to the tax rates and bases, and an intention to improve the efficiency of tax collection and increase compliance, it said.</div><div><br></div><div>"Sri Lanka has carried out critical reforms since the start of the economic crisis. Staying on the course of reforms while managing fiscal risks is crucial to restoring a sustainable growth path," said Faris H. Hadad-Zervos, World Bank country director for Maldives, Nepal, and Sri Lanka, reports XINHUA.</div><div><br></div><div>He also said current efforts to mobilize tax revenue should be coupled with continued reforms towards transparency of expenditures to build public confidence and to deliver better public services.&nbsp;</div><div><br></div><div>bnbd24/fas</div>