Development lenders inclined to repurpose funds to assist vulnerable and marginalised

The development lending institutions such as the World Bank, Asian Development Bank and the likes have shown their inclination to reallocate their funding lines, which have originally been assigned for specific development products, to assist those who became an immediate casualty of the current economic fallout.

The World Bank in a recent report warned that a large section of the population would plunge into poverty, as a result of the current economic crisis in Sri Lanka, as their access to basic needs and incomes could become challenging with the runaway prices in Sri Lanka at present.

“They have shown some inclination to repurpose their funds in projects and other areas to assist the poor and vulnerable in what is termed as a social safety net,” said Central Bank Governor Dr. Nandalal Weerasinghe. 
“Everybody agrees that an economic stabilisation package is going to be painful but nobody disagrees that we must provide relief to those who get affected badly,” he added. 

The World Bank had already decided to release US $ 300 million immediately, starting from May, out of a US $ 600 million relief package earmarked and there could be reallocations being done from other development projects to assist the most vulnerable and poor going forward.  

A fiscal report released mid last year showed that a half a million people had already fallen below the poverty line in 2020, as a result of the COVID-related lockdowns.

Studies are now emerging showing the futility of lockdowns in controlling the virus spread and wearing masks to prevent catching the virus.