Sri Lanka to receive USD 10 Mn emergency funding from World Bank

The World Bank has agreed to provide an emergency funding of USD 10 million to Sri Lanka for the purchase of essential pharmaceuticals by next week.

In an exclusive interview with Ada Derana, Finance Minister Ali Sabry, PC, said Sri Lanka has additionally sought an aid of USD 500 million from the World Bank, for the provision of chemical fertilizer and seeds to the farmers with the aim of alleviating the issues they are facing.

Minister Sabry noted that the government is also looking to provide a monthly allowance for poverty-stricken people, and to find an intermediate solution for the liquefied petroleum gas issue until the economy of the country is put back on track.

Responding to a question brought up on the government’s plan of action to resolve the fuel and LP gas crises, the finance minister said, “It is very challenging. We cannot deceive the people by saying there is no issue at all.”

The government, at present, is trying to extend the Indian credit line and looking into the possibility of debt restructuring, Sabry explained, adding that Sri Lanka does not have to repay its debts, if attempts for debt restructuring are successful.

In response to a question, Minister Sabry said the Sri Lankan delegation is expected to engage in discussions with the International Monetary Fund (IMF) from 18-23 April, adding that many rounds of talks with the IMF, World Bank, Asian Development Bank, and representatives of foreign countries are also expected in the future.

“We will have to take multiple unprecedented radical decisions in the future, or else we’ll head towards a crash-landing.”

Many important decisions will have to be made to prevent long-term damage to the country’s economy and to protect some of the country’s key locations, and to protect the banking system, Minister Sabry added.