World Bank to disburse $700 million to Sri Lanka
The World Bank is planning to disburse $700 million to crisis-ridden Sri Lanka by re-purposing its existing loans, a move that will help the island nation grappling with an unprecedented economic crisis much-needed breathing space till a bailout package with the International Monetary Fund (IMF) is worked out, media reports said on Monday.
The World Bank country manager Chiyo Kanda met Sri Lankan foreign minister last week and assured him that the agency will work with the Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB) and the UN office to “re-purpose their already committed projects,” news portal Colombo Gazette reported. “Minister Peiris sought assistance from the World Bank until long term assistance materialises through the IMF, other international institutions and donor countries,” the report said, quoting a statement from Sri Lanka's Foreign Ministry.
Consequently, Kanda has assured Peiris that the global lender would disburse ~700 million to Sri Lanka in these difficult times in the coming months, the report said.
Earlier this month, the IMF said it remains committed to assisting Sri Lanka in line with its policies, the Colombo Gazette reported.
Technical-level discussions with Sri Lanka have commenced. They will continue in order to prepare for policy discussions once a new government has been formed, the IMF was quoted as saying by the report. “On our virtual mission during May 9-23, discussions at the technical level have just started and continued as planned so as to be fully prepared for policy discussions once a new government has been formed,” the IMF said in a statement.
The IMF also said that it is following developments in Sri Lanka closely and is concerned about rising social tensions and violence.
In April, the two sides convened their first round of talks at the IMF headquarters in Washington. Sri Lanka is hoping for a Rapid Finance Instrument (RFI) facility as well as a larger Extended Fund Facility (EFF) from the international financial body to help it deal with its foreign currency shortages, which have triggered an economic crisis.