Sri Lanka has been granted $1.34 billion in loans from the World Bank announced the government’s finance ministry, as it looks to stabilise the island’s struggling economy.
"This is a great victory for us and it will help us in the fiscal consolidation programme that the new government has started," said Sri Lanka’s Finance Minister Ravi Karunanayake.
The move will see loans spread out over 15 years, reports AFP. The loans will add to the government’s debt situation, which has reportedly seen over 95% of all government revenue is spent on repaying loans,
It comes after Moody's Investors Service highlighted the risk of Sri Lanka being vulnerable to direct and indirect effects of sustained capital outflows.