“The World Bank Board of Directors also approved USD 700 million in financing for two operations to support inclusive and private sector-led recovery and growth in Sri Lanka,” the World Bank said in a press release. “These operations will assist Sri Lanka in implementing fundamental reforms that restore macroeconomic stability and sustainability, mitigate the impact of current and future shocks on the poor and vulnerable, and support an inclusive and private sector-led recovery and growth path.”

500 million dollars will be set aside to assist changes that help strengthen economic governance, boost growth and competitiveness, and safeguard the weak and disadvantaged.

Additionally, USD 200 million has been allocated to assist Sri Lanka in strengthening the responsiveness of the social security system and offering better targeted income and livelihood possibilities to the poor and vulnerable.

“The Sri Lanka Resilience, Stability and Economic Turnaround (RESET) Development Policy Operation (USD 500 million) would support reforms that aid in enhancing economic growth and competitiveness, improving economic governance, and safeguarding the weak and disadvantaged. According to previously agreed-upon steps, it will offer budget support in two equal installments, the World Bank said in a press release.

It said, “The Social Protection Project (USD 200 million) seeks to support Sri Lanka in improving the responsiveness of the social protection system and providing better targeted income and livelihood opportunities to the poor and vulnerable.”

The new Country Partnership Framework (CPF) for Sri Lanka, which seeks to assist in restoring economic and financial sector stability and build a strong basis for a green, resilient, and inclusive recovery, was considered by the Board of Executive Directors of the World Bank Group on Wednesday.

The Country Partnership Framework is being implemented while Sri Lanka deals with an economic crisis that is having an impact on people’s lives and means of subsistence.

According to a press release from the World Bank, Sri Lanka’s poverty rate is predicted to have doubled between 2021 and 2022, rising from 13.1% to 25%.

According to Faris H Hadad-Zervos, the World Bank’s Country Director for Sri Lanka, “the scale of the crisis in Sri Lanka is unprecedented, but it presents a historic opportunity for profound reforms to rewrite the country’s economic narrative.”

“The CPF supports this shift,” he continued. The World Bank Group policy employs a phased approach and emphasises early economic stabilisation, structural changes, and protection of the weak and vulnerable. These reforms have the potential to return the nation to its previous course of inclusive, resilient, and green growth if they are maintained.

The International Monetary Fund (IMF) Executive Board earlier in March agreed a 48-month extension of the Extended Fund Facility (EFF) with a sum of SDR 2.286 billion (395 percent of quota, or around USD 3 billion) for Sri Lanka.