No new financing to Sri Lanka until macroeconomic policy framework is ready - WB

The World Bank Group says it is deeply concerned about the dire economic situation and its impact on the people of Sri Lanka.

In a statement, the global financial institution said it is repurposing resources under existing loans in our portfolio to help alleviate severe shortages of essential items such as medicines, cooking gas, fertilizer, meals for school children and cash transfers for poor and vulnerable households.

“To date, about US$160 million of these funds has been disbursed to meet urgent needs. In addition, other ongoing projects continue to support basic services, the delivery of medicine and medical supplies, school meals and tuition waivers.”

The World Bank Group said it is working closely with implementing agencies to establish robust controls and fiduciary oversight to ensure these resources reach the poorest and most vulnerable.

“We will continue to monitor this closely. We are also coordinating closely with other development partners to maximize the impact of our support for the people of Sri Lanka.”

Until an adequate macroeconomic policy framework is in place, the World Bank Group says it does not plan to offer new financing to Sri Lanka. This requires deep structural reforms that focus on economic stabilization, and also on addressing the root structural causes that created this crisis to ensure that Sri Lanka’s future recovery and development is resilient and inclusive, the statement read further.