Colombo, Dec 20 (EFE).- The World Bank said on Wednesday that it released a second tranche of $250 million in aid for Sri Lanka’s economic reforms following a severe crisis.
The World Bank pledged $500 million in budgetary support and released its first tranche in June to help the island recover from the economic crisis and promote economic reforms. An additional $200 million was promised for the social security of the poor and vulnerable.
“Continued momentum on economic and structural reforms is critical not only to stabilize the economy but also to unleash its potential for private sector-led growth and transformation,” Country Director Faris H. Hadad-Zervos said in a press statement.
According to the bank, the aid aims to support the government’s reforms, boost Sri Lanka’s growth potential, and encourage private sector investment for inclusive and resilient growth and job creation.
“We have coordinated and sequenced all our support with the IMF, ADB, and other development partners,” the bank said.
The International Monetary Fund earlier this month cleared the first review of Sri Lanka’s $2.9 billion bailout, providing about $337 million to help tackle the fallout from the country’s worst financial crisis in decades.
Sri Lanka reached out to the IMF and World Bank after announcing it had turned bankrupt last year.
The island suspended its foreign debt payments a year ago due to the financial crisis, the worst since its independence from the British Empire in 1948.
Double-digit inflation and crippling shortages of fuel, food, and other essential products like medicines badly hit the Sri Lankans.
The poverty rate increased from 13.1 percent in 2021 to 25 percent in 2022. EFE
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