World Bank sets record straight on SL’s claims of new financial support

Thursday, 26 May 2022 04:21 - - {{hitsCtrl.values.hits}}

Says until adequate macroeconomic policy framework is in place, it does not plan to offer new financing to Sri Lanka
At present, WB only repurposing resources from previously approved projects to help Govt. with some essential medicines, temporary cash transfers for poor households, school meals for children of vulnerable families and support for farmers and SMEs

The World Bank yesterday set the record straight on Sri Lanka’s claims recently about gaining new financial support from the multilateral organisation.

“Recent media reports have inaccurately stated that the World Bank is planning support for Sri Lanka in the form of a bridge loan or new loan commitments, among other incorrect assertions,” the World Bank said in a

statement.

World...

“We are concerned for the people of Sri Lanka and are working in coordination with the IMF and other development partners in advising on appropriate policies to restore economic stability and broad-based growth. Until an adequate macroeconomic policy framework is in place, the World Bank does not plan to offer new financing to Sri Lanka,” it said.

“We are currently repurposing resources from previously approved projects to help the Government with some essential medicines, temporary cash transfers for poor and vulnerable households, school meals for children of vulnerable families, and support for farmers and small businesses,” the statement added.

Previously former Finance Minister Ali Sabry, Treasury and Central Bank officials had stated that Sri Lanka was negotiating for $ 600 million support from the World Bank and of that $ 400 million will be released within weeks.

Prime Minister Ranil Wickremesinghe on 18 May told Parliament that the country has received $ 160 million from the World Bank though it cannot be used to buy oil.

Soon after attending the World Bank-IMF Spring Meetings in Washington DC in April, Finance Ministry in a statement (treasury.gov.lk/news/article/108) said the following: During the discussion, World Bank’s Vice President for the South Asia Region and senior officials of the World Bank Group expressed commitment to provide emergency support for essential medicines and health-related supplies, meals for school children, and cash transfers for poor and vulnerable households.

The World Bank’s emergency response package includes immediate financing for the purchase of essential medicines, and a total package of around $ 600 million is expected over the immediate short term, short term and the medium term, and the funds will be made available by repurposing some ongoing projects, triggering Contingent Emergency Response Components (CERC) of some ongoing projects and also with new financing arrangements. Support to provide cooking gas, basic food supplies, seeds and fertiliser and other essentials is also under discussion.