May 25, 2022

No more loans until adequate macroeconomic policy framework in place - WB

The World Bank has said that until an adequate macroeconomic policy framework is in place, it does not plan to offer new financing to Sri Lanka.

Issuing a statement, the World Bank said it is concerned for the people of Sri Lanka and is working in coordination with the International Monetary Fund and other development partners in advising on appropriate policies to restore economic stability and broad-based growth.

The WB said that Sri Lanka needs to formulate a clear policy framework for achieving economic stability.

The statement by the World Bank further noted that it is currently repurposing resources from previously approved projects to help the government with some essential medicines, temporary cash transfers for poor and vulnerable households, school meals for children of vulnerable families, and support for farmers and small businesses.

Meanwhile, USAID Administrator Samantha Power held a telephone discussion with Prime Minister Ranil Wickremesinghe.

The United States Agency for International Development (USAID) will closely work with other donors such as the International Monetary Fund (IMF), the World Bank, G7 countries, and other stakeholders to support Sri Lanka during this extraordinarily difficult period, the agency’s administrator Samantha Power has assured Prime Minister Ranil Wickremesinghe during their discussion.