Sri Lanka gets first tranche of $ 250 m from WB’s $ 750 m budget support
Wednesday, 5 July 2023 00:26 – – 43
Sri Lanka has received $250 million as the first tranche out of a $500 million World Bank budgetary support.
“We are pleased to confirm that the first disbursement of $250 million out of $500 million for budget support from the World Bank has been received,” State Minister of Finance Shehan Semasinghe said.
The World Bank Board of Directors on 28 June approved $700 million in financing to help Sri Lanka to recover from the current economic crisis and provide relief to the poor and vulnerable people.
Of this amount, $ 500 million have been assigned for budgetary support and $ 200 million for social security.
This is the biggest financial relief to Sri Lanka since Sri Lanka reached an agreement with the International Monetary Fund last March to provide an Extended Fund Facility of $ 2.9 billion.
The $ 500 million budget support to be provided in two equal tranches will support reforms that help improve economic governance, enhance growth and competitiveness, and protect the poor and vulnerable.
The $ 200 million for social security will support Sri Lanka in providing better-targeted income and livelihood opportunities to the poor and vulnerable and improving the responsiveness of the social protection system.