According to State Minister of Finance Shehan Semasinghe, Sri Lanka has received the first disbursement of USD 250 million from the World Bank’s budgetary support of USD 500 million.
The international financial organization authorized USD 700 million in finance for Sri Lanka’s budget and welfare on June 28. Since receiving a rescue package from the International Monetary Fund (IMF) in March, the island nation has experienced its largest financial slump.
The World Bank stated that it intends to use this funding to assist Sri Lanka in implementing fundamental reforms that restore macroeconomic stability and sustainability, lessen the impact of present and upcoming shocks on the poor and vulnerable, and support an inclusive and private sector-led recovery and growth path.
In order to promote reforms that increase economic governance, boost growth and competitiveness, and safeguard the weak and poor, USD 500 million of the funds are designated for the “Sri Lanka Resilience, Stability & Economic Turnaround (RESET) Development Policy Operation.”
In response to previously agreed-upon activities, this operation will offer fiscal help in two equal installments.
The “Social Protection Project,” which attempts to support Sri Lanka in better-targeting income and livelihood options for the poor and vulnerable and strengthening the responsiveness of the social protection program, is allocated for welfare support of USD 200 million.
The World Bank Group’s Board of Executive Directors approved the money during a meeting on June 28 to consider the new Country Partnership Framework (CPF) for Sri Lanka.
