In a major boost for Sri Lanka, the World Bank has granted approval for a significant funding package of 700 million dollars. Of the approved funds, approximately 500 million dollars will be designated for budgetary support, while the remaining 200 million dollars will be dedicated to welfare support, aimed at providing assistance to those hardest hit by the ongoing crisis.
In a statement, the World Bank’s country director for Sri Lanka, Faris Hadad-Zervos, outlined the institution’s strategy, which focuses on economic stabilization, structural reforms, and safeguarding the welfare of the vulnerable population. Mr. Zervos expressed optimism that sustained implementation of these reforms could steer the country toward green, resilient, and inclusive development.
Sri Lanka has been grappling with its most severe financial crisis since gaining independence from Britain in 1948. The country witnessed record lows in Foreign Exchange reserves last year following which India had extended humanitarian assistance of about 4 billion dollars through grants and lines of credit.
This World Bank assistance marks the largest tranche of financial support the crisis-stricken island nation has received since the International Monetary Fund (IMF) agreement in March. IMF had approved close to a 3 Billion dollars extended fund facility which would be available to Sri Lanka over a 48 month period.
