World Bank says that until an adequate macroeconomic policy framework is in place, it does not plan to offer new financing to Sri Lanka. This requires deep structural reforms that focus on economic stabilization while addressing the root structural causes that created this crisis, it said in a statement.
However the bank said they are repurposing resources under existing loans in their portfolio to help alleviate severe shortages of essential items such as medicines, cooking gas, fertilizer, meals for school children and cash transfers for poor and vulnerable households.
To date, about US$160 million of these funds has been disbursed to meet urgent needs. In addition, other ongoing projects continue to support basic services, the delivery of medicine and medical supplies, school meals and tuition waivers.
Bank said they are working closely with implementing agencies to establish robust controls and fiduciary oversight to ensure these resources reach the poorest and most vulnerable. “We will continue to monitor this closely. We are also coordinating closely with other development partners to maximize the impact of our support for the people of Sri Lanka” the bank further said.
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