World Bank Group says it has approved $700 million in financing for two initiatives to help implement fundamental reforms in Sri Lanka
Release Date – Thursday 23rd 29th at 09:00pm
Colombo: The World Bank Group said it had approved $700 million in financing for two operations to help Sri Lanka implement fundamental reforms as the island nation grapples with its worst-ever economic crisis.
The World Bank Group’s executive board discussed Sri Lanka’s new Country Partnership Framework (CPF), which aims to help restore economic and financial sector stability and lay a solid foundation for a green, resilient and inclusive recovery, Xinhua reported. Quoting official statements issued by global lenders.
The CPF scheme, covering 2024 to 2027, proposes a two-stage approach, focusing first on urgent macro-fiscal and structural reforms and supporting the protection of human capital and the most vulnerable.
The statement stated that the country is currently dealing with the worst economic crisis in history, which has had a devastating impact on people’s lives and requires deep reforms to stabilize the economy and protect the poor and vulnerable.
Between 2021 and 2022, Sri Lanka’s poverty rate is expected to double, from 13.1 percent to 25 percent, with an increase of 2.5 million people living in poverty, and is expected to increase by another 2.4 percentage points by 2023, the statement said.
“The magnitude of the crisis in Sri Lanka is unprecedented, but it presents a historic opportunity to deepen reforms and reshape the country’s economic development,” said Faris H. Haddad-Zervos, World Bank Country Director for Sri Lanka.
