World Bank has no new financing plans for crisis-hit Sri Lanka

REUTERS: The World Bank does not plan to offer new financing to Sri Lanka, which is battling its worst economic crisis in decades, until the Indian Ocean nation has an adequate macroeconomic policy framework in place, the lender said on Thursday.

In a statement, the World Bank said Sri Lanka needed to adopt structural reforms that focus on economic stabilisation and tackle the root causes of its crisis, which has starved it of foreign exchange and led to shortages of food, fuel and medicines.

The bank is repurposing resources under the existing loans to help alleviate the shortages of essential items such as medicine, cooking gas, fertiliser, meals for children and cash for vulnerable households, it added.
The bank said it was working closely to establish control and fiduciary oversight to ensure fair distribution.