The World Bank has granted approval for a significant fund installment of $700 million to Sri Lanka, marking the largest disbursement received by the country since the loan installment provided by the International Monetary Fund in March.
Out of the total amount, approximately $500 million will be allocated for budget support, while the remaining $200 million has been earmarked for welfare assistance targeting those who have been severely impacted by the ongoing economic crisis.
Faris Hadad-Zervos, the World Bank’s Director for Sri Lanka, stated that their strategy involves a phased approach, focusing on early economic stabilization, structural reforms, and safeguarding the well-being of the poor and vulnerable. He expressed optimism that sustained economic reforms will enable the country to embark on a path of effective development once again.
In addition to this World Bank funding, Sri Lanka anticipates receiving up to $4 billion in additional financial support from the Asian Development Bank, other multilateral agencies, and the previously approved $3 billion bailout from the IMF in March.
