Sri Lanka Financial Sector Modernization Project - P159303

The Project Development Objective (PDO) is 'to contribute to increasing financial market efficiency and use of financial services am ong micro, small and medium enterprises (MSMEs) and individuals'.The project will achieve the PDO through modernizing financial ma rket infrastructure, upgrading the legal and regulatory framework for the financial system, and strengthening the institutional capa city of financial sector regulators (Central Bank of Sri Lanka, [CBSL]; Securities and Exchange Commission of Sri Lanka, [SEC]; and Insurance Board of Sri Lanka, [IBSL]).On account of its comprehensive approach to creating an enabling environment for robust finan cial development, the project is also expected to advance financial inclusion through (a) increased financial efficiency and competi tion and (b) the greater reach and financial connectivity of MSMEs and individuals that the new and more inclusive financial market infrastructure shall enable.