Following the Cabinet’s approval on Tuesday, Sri Lanka intends to sign a deal with the World Bank for $500 million in financial help, according to Reuters.
This financing infusion represents Sri Lanka’s largest since an agreement with the International Monetary Fund (IMF) in March.
With a population of 22 million, Sri Lanka is emerging from its worst economic crisis in seven decades. Following last year’s record contraction of 7.8%, the country’s economy is predicted to drop by 2% this year before growing again in 2019.
The World Bank was expected to grant $700 million in budgetary and welfare support for Sri Lanka, according to news reports from last week.
According to Reuters, the World Bank board meeting on June 28 was likely to approve the budgetary and welfare help.
The report states that $200 million of the $700 million in budgetary and welfare support will go into welfare programs.
The financing from the lender will arrive in two tranches, the administration announced on Tuesday (26).
