World Bank likely to approve substantial aid package worth 700 million to crisis-hit Sri Lanka

World Bank likely to approve substantial aid package worth 700 million to crisis-hit Sri Lanka

• World Bank is likely to approve a substantial aid package worth $700 million to crisis-hit Sri Lanka. Agency sources report that the board meeting, scheduled for 28th of June, would allow the largest funding tranche the island nation has received since securing a deal with the International Monetary Fund in March.
• The proposed funding would comprise $500 million for budgetary support, likely to be disbursed in two installments of $250 million each. The initial tranche is anticipated to be granted immediately following board approval, with the second installment potentially arriving in October, contingent upon Sri Lanka's progress in debt restructuring and the upcoming first review of the IMF program in September.
• Additionally, an allocation of $200 million will be earmarked for programs aimed at assisting the country's impoverished population, which has swelled to 25% in the wake of last year's severe economic crisis. The country experienced a record 7.8% contraction last year, primarily due to depleted foreign exchange reserves.
• In March, the International Monetary Fund approved a rescue package of nearly $3 billion. Sri Lanka anticipates that this endorsement will attract additional funding of up to $4 billion from the World Bank, the Asian Development Bank, and other multilateral institutions.

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Published date : 20 Jun 2023 06:07PM