Sri Lanka Seeks Assistance From The World Bank

Sri Lanka has sought assistance from the World Bank until long term assistance materializes through the International Monetary Fund (IMF).

World Bank Country Manager in Colombo, Chiyo Kanda, called on the Minister of Foreign Affairs Prof. G.L. Peiris at the Ministry of Foreign Affairs.

Minister Peiris sought assistance from the World Bank until long term assistance materializes through the IMF, other international institutions and donor countries.

The Minister highlighted the severity of the challenges in reducing the budget deficit at the forthcoming budget.

The Minister stated that short term financial assistance from the World Bank would be appreciated until sustainable solutions are found.

The World Bank Country Manager stated that her office is also working with other organizations such as ADB, Asian Infrastructure Investment Bank (AIIB), and UN office and encourages them for 're-purposing' their already committed projects to help the people of Sri Lanka at this difficult time.

The World Bank had recently ruled out new financing to Sri Lanka until an adequate macroeconomic policy framework is in place.

Issuing a statement, the World Bank had said that recent media reports have inaccurately stated that the World Bank is planning support for Sri Lanka in the form of a bridge loan or new loan commitments, among other incorrect assertions.

“We are concerned for the people of Sri Lanka and are working in coordination with the IMF and other development partners in advising on appropriate policies to restore economic stability and broad-based growth. Until an adequate macroeconomic policy framework is in place, the World Bank does not plan to offer new financing to Sri Lanka,” the World Bank said.

The World Bank said that it is currently repurposing resources from previously approved projects to help the Government with some essential medicines, temporary cash transfers for poor and vulnerable households, school meals for children of vulnerable families, and support for farmers and small businesses. (Colombo Gazette)

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