The World Bank plans to disburse বিদ্যমান 700 million in crisis-ridden Sri Lanka to repay its existing debt, a move that will help the island nation plunge into an unprecedented economic crisis, up to a bailout package with international currency. Funding (IMF) has been worked out, media reports said on Monday.
Sri Lanka is on the verge of bankruptcy and is in dire need of food, fuel, medicine and cooking gas.
For months, citizens have been forced to wait in long lines to buy limited stock.
World Bank Country Manager Chiyo Kanda met with the Sri Lankan Foreign Minister last week and assured him that the agency would work with the Asian Development Bank (ADB), the Asian Infrastructure Investment Bank (AIIB) and the UN office on their already committed projects. Gazette reported.
The report quoted a statement from Sri Lanka’s foreign ministry as saying, “Minister Peiris has asked the World Bank for assistance until long-term assistance is implemented through the IMF, other international organizations and donor countries.”
As a result, Ms. Kanda assured Minister Peiris that global lenders would disburse $ 700 million to Sri Lanka during this difficult time next month, the report said.
Earlier this month, the International Monetary Fund (IMF) said it was committed to helping Sri Lanka comply with its policy, the Colombo Gazette reported.
Technical level talks have started with Sri Lanka. They will continue to prepare for policy talks once a new government is formed, the IMF report said.
The IMF said in a statement that “in our virtual mission on May 9-23, discussions at the technical level have just begun and continue as planned so that a new government can be fully prepared for policy talks.”
The IMF also said it was closely following Sri Lanka’s development and was concerned about growing social tensions and violence.
In April, both sides convened their first round of talks at the IMF headquarters in Washington.
Sri Lanka is hoping for a Rapid Finance Instrument (RFI) facility as well as a larger Extended Fund Facility (EFF) from the International Monetary Fund to help address its foreign exchange deficit, which has created an economic crisis.
At the last meeting, the IMF pledged 300 300 million to 600 600 million in aid to the country.
On 12 April, Sri Lanka suspended its loan services for the first time in its history.
The island nation has faced its worst economic crisis since gaining independence from Britain in 1948.
The economic crisis has also caused political unrest, with protesters occupying the entrance to the president’s office demanding his resignation for more than 50 days.
(Except for the title, this story was not edited by NDTV staff and was published from a syndicated feed.)