World Bank Approves $700 Million Loan to Help Sri Lanka Recover from Economic Crisis

Jakarta –

The World Bank (World Bank) will disburse loans to Sri Lanka US$ 700 million or around Rp. 10.5 trillion (exchange rate of Rp. 15,000). The loan was given to help the country emerge from the economic crisis.

In detail, around US$ 500 million of these funds will be allocated for budget support. While the remaining US$ 200 million will be used for social assistance to the people hardest hit by the crisis.

“Through a phased approach, the World Bank’s strategy focuses on early economic stabilization, structural reforms, and protecting the poor and vulnerable,” World Bank Sri Lanka Director Faris Hadad-Zervos said in a statement. /2023).

“If sustained, these reforms could put the country back on a path towards green, resilient and inclusive development,” continued Zervos.

As is known, Sri Lanka has experienced a financial crisis. Until finally the financial crisis continued and caused the country’s foreign exchange to reach a record low and triggered its first foreign debt default last year.

Previously, the International Monetary Fund (IMF) had also provided a loan of US$ 3 billion in March 2023.

The island nation will release its domestic debt restructuring program this week to encourage reworking of its debts with bilateral bondholders and creditors including China, Japan and India.

(ada/hns)

2023-06-29 15:53:19
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