A request made by Sri Lanka has been approved by the World Bank today.
That is the request to obtain concessional financial facilities from the International Development Association (IDA).
This type of financial facility, offered at low-interest rates, will enable the country to implement the government-led reform program to stabilize the country’s economy and protect the livelihoods of millions of people suffering from poverty and hunger, the World Bank said in a statement.
This demand is a result of the deterioration of the sustainability of economic and social conditions in Sri Lanka. It has reduced income levels, reversed poverty gains and affected its access to financial markets.
This approval means that Sri Lanka is now an IDA country. “We are committed to helping the Sri Lankan people in this time of dire need, so their country can turn around and restore its economic well-being,” said World Bank Vice President for Development Finance Akihiko Nishio. He has also said, “The World Bank stands ready to support Sri Lanka as it implements reforms that will create the basis for sustainable growth to reduce poverty and rebuild the economy.”
Through International Development Association support, Sri Lanka will be supported as it implements reforms to recover and improve the country’s economic prospects.
Through this, the World Bank will provide concessional financing, technical assistance and policy advice for measures explicitly targeting the poor.
