World Bank To Stop New Financing To Sri Lanka
- 30-Jul-2022
- 0 Comments
Colombo: The World Bank does not plan to offer new financing to crisis-hit Sri Lanka until an ‘adequate’ macroeconomic policy framework is in place. The statement by the World Bank was released on Thursday, two days after the International Monetary Fund asked the cash-strapped Sri Lanka to begin debt restructuring talks with its creditors, including China, before it can hope of getting the bailout package.
The island nation of 22 million is in the midst of an unprecedented economic crisis that has led to severe shortages of fuel and other essentials. Until an adequate macroeconomic policy framework is in place, the World Bank does not plan to offer new financing to Sri Lanka.
However, this requires deep structural reforms that focus on economic stabilisation, and also on addressing the root structural causes that created this crisis to ensure that Sri Lanka’s future recovery and development is resilient and inclusive.
