July 29, 2022
2 mins read

World Bank has no plan for new financing to crisis-hit Lanka

Regarding the ongoing crisis, the World Bank Group said it is deeply concerned about the dire economic situation and its impact on the people of Sri Lanka…reports Asian Lite News

The World Bank has no plan to offer new financing to Sri Lanka until an adequate macroeconomic policy framework is in place in the island country, which is facing its worst crisis.

The international financial institution in a statement said deep structural reforms are needed.

 Reforms must 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.

Regarding the ongoing crisis, the World Bank Group said it is deeply concerned about the dire economic situation and its impact on the people of Sri Lanka.

“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, we are repurposing resources under existing loans in our portfolio. To date, about USD 160 million of these funds have been disbursed to meet urgent needs,” the statement said.

In addition, other ongoing projects continue to support basic services, the delivery of medicine and medical supplies, school meals and tuition waivers.

“We are 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,” it added.

We are also coordinating closely with other development partners to maximize the impact of our support for the people of Sri Lanka.

For the record, Sri Lanka has experienced an escalating economic crisis and the government has defaulted on its foreign loans. The United Nations warned that 5.7 million people “require immediate humanitarian assistance.”

With many Sri Lankans experiencing extreme shortages of essentials including food and fuel, peaceful protests began in March. The protests led then-Prime Minister Mahinda Rajapaksa to resign on May 9, and his brother, President Gotabaya Rajapaksa, to flee the country on July 13 and resign the following day.

Ranil Wickremesinghe became acting President and parliament elected him as the new president on July 20 with the support of the Rajapaksas’ political party, the Sri Lanka Podujana Peramuna. (ANI)

ALSO READ: Sri Lanka extends state of emergency for a month

Previous Story

Chinese court jails poet who called on Xi to step down

Next Story

Saudi crown prince, UNESCO chief discuss cultural initiatives

Latest from -Top News

Hamas Reiterates Peace Effort After U.S. Jab

Hamas Reaffirms Commitment to Ceasefire Talks After U.S. Criticism…reports Asian Lite News Hamas on Friday reiterated its commitment to the ongoing ceasefire negotiations, responding to remarks by U.S. Special Envoy to the

No smoking gun in Epstein files: Trump briefed

Attorney General Pam Bondi briefed Trump and Deputy Attorney General Todd Blanche at the White House in May….reports Asian Lite News US President Donald Trump was informed earlier this year that his

Israel, US recall teams from Gaza truce talks

Steve Witkoff said mediators had made a great effort but “Hamas does not appear to be coordinated or acting in good faith”…reports Asian Lite News Israel and the United States recalled their

Trump presses Fed chief to cut rates

Fed chair pushes back on Trump criticism of renovation costs as president presses central bank to cut interest rates…reports Asian Lite News Donald Trump sparred with the Federal Reserve chair, Jerome Powell,

Dubai turns malls Into fitness zones

Dubai’s Mallathon reimagines shopping centres as fitness zones, encouraging residents of all ages to walk, run, and connect—fostering healthier habits in air-conditioned comfort….reports Asian Lite News In a bold move to blend
Go toTop

Don't Miss

Lanka pins hopes on Indian holidaymakers

After witnessing two Covid-19 waves, Sri Lanka’s tourism was further

Sri Lanka Ready to Welcome Travellers

All cultural and recreational sites in Sri Lanka are now