Cabinet nod to borrow US$ 500mn from World Bank in budgetary support

The Cabinet nod has been granted to enter into an agreement with the World Bank (WB) to borrow US$ 500 million in budgetary support to be received in two tranches this year.
President Ranil Wickremesinghe in his capacity as the Minister of Finance, Economic Stabilisation and National Policies sought the approval of the Cabinet of Ministers to enter into an agreement with WB’s concessionary funding arm, International Development Association (IDA) to secure the funds.
The clearance of Central Bank’s Monetary Board and the Attorney General has already been received to sign the agreement.

The government held negotiations with World Bank officials on May 17 this year to obtain funds in line with International Monetary Fund’s (IMF) stabilisation programme for the two-year period. 
The Director Board of the World Bank is expected to approve the funds for the country on 28th of this month.
The government Information Department said the US$ 500 million would come in two tranches.

In addition, the country is also expected to receive a US$ 200 million loan from the World Bank for the ‘Aswesuma’ social safety net programme.