The Sri Lankan authorities has appealed to a number of nations and multilateral organizations for bridge financing till the Worldwide Financial Fund comes up with its aid
COLOMBO, Sri Lanka – The World Bank has agreed to provide Sri Lanka with $600 million in financial help to assist meet fee necessities for important imports, the Sri Lankan president’s media division mentioned in a press release on Tuesday, April 26.
“The World Bank has agreed to provide $600 million in financial assistance to address the current economic crisis,” the assertion mentioned.
The World Bank would launch $400 million “shortly,” it mentioned.
In accordance to the assertion, the World Bank mentioned it could proceed to assist Sri Lanka to overcome the present financial disaster.
Sri Lanka’s worst financial disaster since independence in 1948 was attributable to a drastic drop in its reserves that fell 70% over the previous two years, hitting $1.93 billion on the finish of March. This left Colombo struggling to pay for necessities, together with gasoline, medicines, and meals.
Earlier this month, Sri Lanka kicked off talks with the Worldwide Financial Fund for financial help. Earlier than the IMF finalizes a program for Sri Lanka, the nation wants $3 billion to $4 billion in bridge financing to assist meet its important bills.
The Sri Lankan authorities has additionally appealed to a number of nations and multilateral organizations for bridge financing till the IMF comes up with its aid.
Sri Lanka’s Finance Minister Ali Sabry mentioned Colombo would additionally search help from the Asian Improvement Bank.
The nation introduced a suspension on a few of its international debt repayments earlier this month and mentioned it could divert its meager reserves to fund important imports reminiscent of gasoline, cooking gasoline, and medication. – Rappler.com