World Bank ‘ready’ to provide funds for COVID-19 vaccine
SL economy to shrink by 6.7% in 2020
The World Bank has made available more than US$ 315 million in funding support to Sri Lanka this year so far for COVID- 19 work while it is also ready to provide funds to the country when a vaccine is available, the bank’s new Country Director Faris Hadad-Zervos said on Thursday.
In an email interview with the Business Times, Mr. Hadad- Zervos, Country Director for the Maldives, Nepal and Sri Lanka who is currently visiting Sri Lanka, said that they are discussing with the government “ways to adjust the existing portfolio further to better align with government priorities and adapt to emerging development needs”.
Most of the funds for COVID-19 work came from the bank’s current portfolio in Sri Lanka which consists of 19 ongoing projects, with a total commitment value of $ 2.363 billion, of which $ 1.51 billion remain undisbursed. He said much of the funds were repurposed (taken from other ongoing projects) to meet the government’s COVID- 19 challenge.
Quoting World Bank figures, he said Sri Lanka’s economy is expected to contract by 6.7 per cent in
2020, with all key drivers of demand affected; exports, private consumption and investment due to the pandemic.
Asked about bank financial support for Sri Lanka to purchase the vaccine when one is available, he said: “Sri Lanka has sent a formal request to express interest in joining the global COVAX initiative— a platform that is coordinated by the GAVI ( Global Alliance for Vaccines and Immunization). All countries participating in COVAX, regardless of income levels, will have access to the COVID- 19 vaccines once they are developed. The aim is to help participating countries vaccinate up to 20 per cent of their populations, including essential and frontline workers ( 3 per cent) and high risk and vulnerable people ( 17 per cent). The exact amount of financing Sri Lanka will receive through the COVAX facility will depend on the total fund mobilized by the facility.”
Mr. Hadad- Zervos, who is based in Kathmandu, said his first visit Sri Lanka has been a productive one with “meetings with the leadership, senior government, civil society, private sector and thought leaders from throughout the spectrum lead me to one conclusion: Sri Lanka’s vast potential for sustainable growth and shared prospect is realizable, and the WB and other development partners can continue to play a key role in walking this path alongside our client”.
On the total funding available to the world by the bank for COVID-19 related work, he said the bank is delivering urgent support to more than 100 countries, home to 70 per cent of the population, with projects that deliver scale and impact. “This is part of record financing of up to $ 160 billion the World Bank Group is making available over a 15- month period ending June 2021. This is tailored to the health, economic and social shocks countries are facing and includes $ 50 billion of new concessional transfers from IDA,” he said. For full interview see www.sundaytimes.lk