Sri Lanka receives 1st disbursement of US$ 250 million from WB

Sri Lanka has received the 1st disbursement of US$ 250 million out of US$ 500 million from the World Bank, the Government said today.

The World Bank had recently approved $700 million in financing to help Sri Lanka implement foundational reforms that restore macroeconomic stability and sustainability.

The Board of Directors of the World Bank had approved $700 million in financing for two operations to help Sri Lanka implement foundational reforms that restore macroeconomic stability and sustainability, mitigate the impact of current and future shocks on the poor and vulnerable, and support an inclusive and private-sector-led recovery and growth path.

“We are pleased to confirm that the 1st disbursement of US$ 250 out of US$ 500 Mn for budget support from the World Bank has been received,” State Minister of Finance Shehan Semasinghe said.

The Sri Lanka Resilience, Stability and Economic Turnaround (RESET) Development Policy Operation ($500 million) will support reforms that help improve economic governance, enhance growth and competitiveness, and protect the poor and vulnerable. It will provide budget support in two equal tranches against agreed prior actions.

The Social Protection Project ($200 million) seeks to support Sri Lanka in providing better-targeted income and livelihood opportunities to the poor and vulnerable and improving the responsiveness of the social protection system. (Colombo Gazette)