The World Bank Group on Friday (July 29th) expressed grave concern over the dire economic situation and its devastating impact on the people of Sri Lanka. The international monetary agency said in a statement that it is “reallocating resources” from existing loans in its portfolio to return essential items that have suffered critical shortages such as medicine, cooking gas, fertilizer and meals available for school children. as vulnerable adults. The World Bank has also proposed that provision be made for meals and tuition waivers for children attending school.
“We are working closely with implementing agencies to establish strong controls and fiduciary oversight to ensure these resources reach the poorest and most vulnerable,” the World Bank said in a July 29 statement.
“We will continue to monitor this closely. We are also coordinating closely with other development partners to maximize the impact of our support to the people of Sri Lanka,” he added.
“No new funding for Sri Lanka”
According to the World Bank, until an adequate macroeconomic policy framework is in place to deal with the Sri Lankan crisis, it does not plan to offer new financing to the island nation. The international financial institution stressed that reversing the worst economic and financial crisis “requires deep structural reforms focused on economic stabilization, as well as addressing the root structural causes that created this crisis in order to ensure that the recovery and future development of Sri Lanka are resilient and inclusive”. “
“Until an adequate macroeconomic policy framework is in place, the World Bank does not plan to offer new financing to Sri Lanka,” the international monetary bank had repeated.
Earlier, the World Bank refuted rumors of approving a “bridge loan or new loan commitments” for cash-strapped Sri Lanka. The bank said this, among other assertions, is incorrect. “We are concerned about the people of Sri Lanka and are working in coordination with the IMF and other development partners to advise on appropriate policies to restore economic stability and broad-based growth,” the World Bank also reiterated.