WB disburses US $ 160 m to tackle SL’s urgent essential item shortage

The World Bank Group said last week it is deeply concerned about the dire economic situation and its impact on the people of Sri Lanka.

To help alleviate severe shortages of essential items such as medicines, cooking gas, fertiliser, meals for school children and cash transfers for poor and vulnerable households, World Bank said it is repurposing resources under existing loans in its portfolio.

“To date, about $ 160 million of these funds has been disbursed to meet urgent needs. In addition, other ongoing projects continue to support basic services, the delivery of medicine and medical supplies, school meals and tuition waivers,” the World Bank said in a statement.

“The World Bank is working closely with implementing agencies to establish robust controls and fiduciary oversight to ensure these resources reach the poorest and most vulnerable while continuing to monitor this closely.

It is also coordinating closely with other development partners to maximise the impact of our support for the people of Sri Lanka,” it said.

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

“This requires deep structural reforms that focus on economic stabilisation, and also on addressing the root structural causes that created this crisis to ensure that Sri Lanka’s future recovery and development is resilient and inclusive,” the World Bank added.

The World Bank does not plan to offer new financing to Sri Lanka, which is battling its worst economic crisis in decades, until the Indian Ocean nation has an adequate macroeconomic policy framework in place, the lender said on Thursday.

In a statement, the World Bank said Sri Lanka needed to adopt structural reforms that focus on economic stabilisation and tackle the root causes of its crisis, which has starved it of foreign exchange and led to shortages of food, fuel and medicines.

“The World Bank Group is deeply concerned about the dire economic situation and its impact on the people of Sri Lanka,” it said.

The bank is repurposing resources under existing loans to help alleviate shortages of essential items such as medicine, cooking gas, fertiliser, meals for children and cash for vulnerable households, it added.

The bank said it was working closely to establish control and fiduciary oversight to ensure fair distribution.