$150 m WB Grant to strengthen financial sector

The World Bank will extend a $ 150 million grant to strengthen the financial sector of Sri Lanka.

The Government said discussions have been held with the World Bank in regard to obtaining loan facilities of the bank for Sri Lanka Deposit Insurance and Liquidity Support Scheme under Sri Lanka Financial Sector Security Network Project.

The proposed loan amount is expected to be used to strengthen the financial and institutional capacity of the Financial Safety Network targeting the Deposit Insurance Scheme with the aim of increasing the strength and efficiency of the financial sector.

“This can preserve stability and lead to the resumption of a good financial intermediary system,” the Government said.

The Cabinet of Ministers at its meeting on Monday approved the proposal tabled by President Ranil Wickremesinghe as the Minister of Finance, Economic Stabilisation and National Policies, to proceed with further activities to obtain the World Bank grant.