The World Bank does not plan to offer new financing to Sri Lanka, which is battling its worst economic crisis in decades, until the Indian Ocean nation has an adequate macroeconomic policy framework in place, the lender said on Thursday.
In a statement, the World Bank said Sri Lanka needed to adopt structural reforms that focus on economic stabilization and tackle the root causes of its crisis, which has starved it of foreign exchange and led to shortages of food, fuel and medicines.
"World Bank Group is deeply concerned about the dire economic situation and its impact on the people of #SriLanka…Until an adequate macroeconomic policy framework is in place, the World Bank does not plan to offer new financing to Sri Lanka,": Statement pic.twitter.com/3E0q4fcKiJ— ANI (@ANI) July 29, 2022
“The World Bank Group is deeply concerned about the dire economic situation and its impact on the people of Sri Lanka,” it said.
The bank is repurposing resources under existing loans to help alleviate shortages of essential items such as medicine, cooking gas, fertilizer, meals for children, and cash for vulnerable households, it added.
The bank said it was working closely to establish control and fiduciary oversight to ensure fair distribution.