World Bank reiterates no new financing until macroeconomic policy framework in place

The World Bank reiterated yesterday that it does not plan to offer new financing to Sri Lanka until an adequate macroeconomic policy framework is in place.

World Bank Country Director for the Maldives, Nepal and Sri Lanka Faris H. Hadad-Zervo said in a tweet yesterday that the media reports of World Bank support highlighting specific numbers were inaccurate.

He was clearly referring to a statement by the Foreign Ministry that had claimed World Bank Country Manager in Colombo Chiyo Kanda had assured US $ 700 million to Sri Lanka in the next few months.

“Recent media reports have given specific numbers of immediate World Bank support. This is not accurate. We are concerned for the people of Sri Lanka and are working closely with development partners.

We are repurposing some resources from the existing projects and advising on policies to restore economic stability and help reverse policies of the past. Until an adequate macroeconomic policy framework is in place, the World Bank does not plan to offer new financing to Sri Lanka,” Hadad-Zervo tweeted.

Meanwhile, in a statement issued on May 24, the World Bank said it is working in coordination with the IMF and other development partners in advising on appropriate policies to restore economic stability and broad-based growth for Sri Lanka.

“Until an adequate macroeconomic policy framework is in place, the World Bank does not plan to offer new financing to Sri Lanka. We are currently repurposing resources from previously approved projects to help the government with some essential medicines, temporary cash transfers for poor and vulnerable households, school meals for children of vulnerable families and support for farmers and small businesses,” it added.