The World Bank does not plan to provide new financial assistance to Sri Lanka until a sufficiently large economic policy framework is developed.
Colombo:
Sri Lanka is suffering from an economic crisis. There is a shortage of petrol, diesel and essential commodities.
The Sri Lankan government is struggling with a lack of foreign exchange reserves to import fuel. Sri Lanka is once again in crisis as those funds have been exhausted with loans from India and the World Bank. Following this, the Government of Sri Lanka has again requested financial assistance from India and the World Bank.
The World Bank has imposed a condition on Sri Lanka to provide financial assistance in this regard. According to a statement issued by the World Bank: –
There are many misinformation that the World Bank is planning to launch a loan scheme or new loan commitments to Sri Lanka.
“We care about the people of Sri Lanka. We will advise on appropriate policies to restore economic stability and broad-based growth. To this end, we are working with the International Monetary Fund and other development partners.
The World Bank does not plan to provide new financial assistance to Sri Lanka until a sufficiently large economic policy framework is developed.
It said it was currently re-creating the resources of previously approved programs to help the government with certain essential medicines, temporary money transfer assistance to low – income and vulnerable families, school needs of children of vulnerable families, food, support for farmers and small businesses.
Central Bank Governor Nandalal Weerasinghe said, “We are hopeful that negotiations with the International Monetary Fund on the restructuring of foreign debt will be completed within the next six to seven months.
The long-term solution to the current crisis is to transform Sri Lanka into a foreign exchange earning country rather than spending foreign exchange.
Accordingly, Sri Lanka’s foreign exchange earning capacity should be improved in the medium and long term.
Otherwise the current crisis in Sri Lanka will continue.
He said there was great difficulty in repaying foreign loans due to the current crisis in the country.
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