World Bank reiterates no new financing to Sri Lanka

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By Editor_1
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COLOMBO – The World Bank on Monday (30) reiterated it does not plan to offer new financing to Sri Lanka until an adequate macroeconomic policy framework is in place.

World Bank Country Director for the Maldives, Nepal and Sri Lanka Faris H. Hadad-Zervo tweeted that media reports of World Bank support highlighting specific numbers were inaccurate.

He was ostensibly referring a statement by Sri Lanka’s Foreign of Foreign Affairs that had claimed World Bank Country Manager in Colombo, Chiyo Kanda, had assured US$ 700 million to Sri Lanka in the next few months.

“Recent media reports have given specific numbers of immediate World Bank support. This is not accurate. We are concerned for the people of #SriLanka and are working closely with development partners.

“We are repurposing some resources from existing projects & advising on policies to restore economic stability & help reverse policies of the past. Until an adequate macroeconomic policy framework is in place, the World Bank does not plan to offer new financing to Sri Lanka,” he said.

The World Bank office in Washington also re-issued an earlier statement as a further clarification on Monday, declaring that it does not plan to offer new financing to Sri Lanka until an adequate macroeconomic policy framework is in place.

The statement in full:

“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.

“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.

“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.”

-EN/ENCL

Editor_1
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