By: Staff Writer
Colombo (LNW):The World Bank (WB) has pledged support to Sri Lanka under its Development Policy Financing Program while the Asian Development Bank (ADB) has agreed to provide a special loan and grant pouring millions of dollars into treasury coffers.
These two financial mobilizations amounting to US$501 million strengthen the country’s foreign reserves are to be received by the treasury as an immediate response of international financial agencies following the unlocking of $ 3 billion IMF Extended Fund Facility recently, two Finance Ministry top officials confirmed.
The World Bank will extend a $ 150 million grant to strengthen the financial sector of Sri Lanka.
The Government said in line with the International Monetary Fund’s (IMF) Extended Funding Facility (EFF) Program, the country has implemented a comprehensive economic stabilization and recovery program with necessary reforms to address macroeconomic challenges.
Discussions have been held with the World Bank in regard to obtaining loan facilities of the bank for Sri Lanka Deposit Insurance and Liquidity Support Scheme under Sri Lanka Financial Sector Security Network Project, finance ministry official said.
The proposed loan amount of $150 million is expected to be used to strengthen the financial and institutional capacity of the Financial Safety Network targeting the Deposit Insurance Scheme with the aim of increasing the strength and efficiency of the financial sector.
This can preserve stability and lead to the resumption of a good financial intermediary system,”he added.
The Cabinet of Ministers at its meeting on Monday approved the proposal tabled by President Ranil Wickremesinghe as the Minister of Finance, Economic Stabilization and National Policies, to proceed with further activities to obtain the World Bank grant
Sri Lanka will get support from the World Bank Development Policy Financing Program, to support the on-going economic stabilization and recovery process.
The Government said in line with the International Monetary Fund’s (IMF) Extended Funding Facility (EFF) Program, the country has implemented a comprehensive economic stabilization and recovery program with necessary reforms to address macroeconomic challenges.
“The World Bank has agreed to support the program through its Development Policy Financing Program and will provide its support based on the 3 key areas of economic governance transformation, growth and competitiveness improvement, and protection of the poor and vulnerable,” another senior official said.
The President has already directed the treasury officials to carry out the entire coordination process of the proposed World Bank program by the Presidential Secretariat and to authorize the Department of Foreign Resources to conduct negotiations with the World Bank in relation to obtaining the relevant funds.
In the meantime the ADB will provide a special loan facility of $ 350 million based on policies and another loan grant of $ 1.5 million as technical assistance in order to strengthen the stability and administration.
The Cabinet of Ministers on Monday at its meeting approved plans to obtain new financial and technical support from the Asian Development Bank (ADB) to aid the on-going recovery from the economic crisis.
The Government said parallel to the comprehensive funding facility approved by the International Monetary Fund (IMF), the Asian Development Bank has agreed to provide a special loan facility.
Accordingly, the Cabinet of Ministers approved the proposal furnished by President Ranil Wickremesinghe as the Minister of Finance, to entrust the responsibility to the Ministry Secretary for processing the further activities on obtaining the relevant loan.
