- Bandula says support comes under three categories
The World Bank (WB) has expressed willingness to extend support to establish social safety in Sri Lanka, following the approval of the Extended Fund Facility (EFF) by the International Monetary Fund (IMF).
Speaking at the weekly press briefing on cabinet decisions on April 24, Minister of Mass Media Dr. Bandula Gunawardana stated: "Under three key categories of transformation and development of economic activities, improving competition as well as protecting the poor and vulnerable, the World Bank extends its support to Sri Lanka."
Minister Gunawardana said that the World Bank has agreed to support the country through its Development Policy Financing Programme.
The Government of Sri Lanka (GoSL) has implemented a comprehensive economic stabilisation and recovery programme with necessary reforms to address macroeconomic challenges, in line with the IMF's Comprehensive Funding Facility Program, he noted.
On March 20, issuing a statement following the Executive Board discussion on Sri Lanka Managing Director Kristalina Georgieva said: "Ambitious revenue-based fiscal consolidation is necessary for restoring fiscal and debt sustainability while protecting the poor and vulnerable. In this regard, the momentum of ongoing progressive tax reforms should be maintained, and social safety nets should be strengthened and better targeted to the poor.”
Accordingly, the Cabinet of Ministers approved the proposal presented by the President in his capacity as the Minister of Finance, Economic Stabilization, and National Policies to carry out the coordination process of the aforesaid proposed program by the Presidential Secretariat and to authorise the Department of Foreign Resources of the Ministry of Finance to conduct negotiations with the World Bank in relation to obtaining those funds.
Also, following the virtual investor presentation held on March 30 this year, issuing a statement, the Central Bank of Sri Lanka said that the IMF Board approved for Sri Lanka's IMF program has been able to unlock up to $7 billion in funding from the IMF and other Independent Fiscal Institutions (IFIs).