The new Country Partnership Framework(CPF or framework) presents the engagement of the World BankGroup (WBG) in Sri Lanka over the next four years (fiscalyears 2017-20 (FY17–20)). The CPF aims to support theachievement of some of the government’s medium-term goals inareas that are critical for reducing extreme poverty andpromoting shared prosperity, and that are consistent withthe WBG’s comparative advantage. Notably, the CPF providesthe framework for engagement in several key policy areas.Following presidential and parliamentary elections in 2015,the new coalition government, the National Government ofConsensus, has set out an ambitious vision for Sri Lanka. Itfocuses on supporting job creation in the private sector,advancing the country’s global integration, improvinggovernance, enhancing human development and socialinclusion, and balancing development with environmentalconservation. The vision has been captured in the PrimeMinister’s Economic Policy Statement of November 5, 2015.The new government’s development agenda is well aligned withthe findings of the 2015 Systematic Country Diagnostic (SCD)for Sri Lanka. The SCD identified the most criticalconstraints and opportunities facing Sri Lanka inaccelerating progress toward the twin goals of endingextreme poverty and promoting shared prosperity in asustainable manner. The analysis concluded that keypriorities are to address the country’s fiscal,competitiveness, and inclusion challenges, as well ascross-cutting governance and social, economic, andenvironmental sustainability challenges. The CPF is anchoredin this analysis.