The World Bank has released US$ 160 million to Sri Lanka to pay for essential imports and the Asian Development Bank’s financial assistance is also expected, Prime Minister Ranil Wickremesinghe revealed in parliament today Wednesday 18. .
Sri Lanka has received financial assistance in bridge financing from the World Bank and it cannot be used for petroleum purchases under the terms and conditions he said.
“We are working to see if these funds can be used for fuel imports,” he added.. Sri Lanka is also expecting a similar amount of $160 million from the Asian Development Bank (ADB), he disclosed.
In an address to the nation on Monday he stated that at least $ 75 is urgently needed to pay for essential imports
Sri Lanka will receive $300m to $600m from the World Bank over the next four months to buy medicine and other essential items, the country’s finance ministry official said.
The island nation is on the brink of bankruptcy, with nearly $7bn of its total $25bn in foreign debt due for repayment this year. A severe shortage of foreign exchange means the country lacks the money to buy imported goods.
Sri Lankans have endured months of shortages of essentials such as food, cooking gas, fuel and medicine, lining up for hours to buy the limited stocks available.
Fuel prices have risen several times in recent months, resulting in sharp increases in transport costs and prices of other goods. There was another round of increases earlier this week.
The World Bank’s Board of Executive Directors has approved a grant financing of US$102 million for the Emergency Resilient Agriculture for Food Security Project to $ 160 million assistance.
The agriculture project will support approximately 75,000 agricultural households (about 375,000 beneficiaries) to improve access to increased supply of nutritious food, secure rural livelihoods and strengthen resilience to climate change and weather events.
The Emergency Resilient Agriculture for Food Security Project will stimulate the agricultural sector through the rehabilitation of productive infrastructures and the provision of temporary employment opportunities, in-kind subsidies, and technical support to promote increased access to and availability of nutritious food.
The project will strongly target women as beneficiaries, as they play a prominent role in agricultural production and sales. The project will be implemented both in the Departments facing severe food security challenges and the earthquake-affected area.
