Sri Lanka already had 'well articulated' vision for development, it said.
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"The road ahead in achieving the ambitious goals and growth targets set in the vision is not going to be easy," Diarietou Gaye, the World Banks' country director for Sri Lanka and Maldives said in a statement after discussions with its board on its new country program
"It will require important policy changes, modernization efforts and innovative strategies.
"It will also require a consolidation of social inclusion, peace and security.
"
Sri Lanka is recovering from a 30-year civil war. The World Bank has backed infrastructure reconstruction as well efforts to rebuild livelihoods of war refugees.
The four year country partnership strategy (CPS) which will run till 2014 will "dramatically" increase resources for Sri Lanka, the lender said without elaborating.
The World Bank also saw some challenges ahead.
"One important area identified in the CPS is improving the investment climate and increasin