In a recent statement, the World Bank announced that it “does not plan to offer new financing in Sri Lanka” until the crisis-hit island has an “adequate macroeconomic policy framework in place.”
According to the lender Sri Lanka requires structural reforms that focus on economic stabilization in order to secure new financing. The economic crisis has disrupted life in the country, creating shortages of essential goods like food, fuel and medicine.
The World Bank is planning on repurposing resources under existing loans 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.”
The lender also stated that it is working closely with implementing agencies to ensure that the poorest and most vulnerable in Sri Lanka will have access to these resources.
The statement clearly outlines that in order for Sri Lanka to receive further financing it requires reforms that will address “the root structural causes that created this crisis to ensure that Sri Lanka’s future recovery and development is resilient and inclusive.”
Read the full statement here