World Bank pledges financial assistance to Sri Lanka

The World Bank has agreed to provide $600 million in financial assistance to Sri Lanka amid the economic crisis.

“World Bank Permanent Representative Chiyo Kanda during a meeting with President Gotabaya Rajapaksa on Tuesday informed that World Bank has agreed to provide US $ 600 million financial assistance to Sri Lanka to overcome the current economic crisis, of which US $ 400 million will be provided promptly under the first phase,” the President’s Media Division said.

This financial assistance will be provided to meet medicinal drugs and health needs, social security, agricultural and food security and gas needs. The World Bank representatives also stated that they will continue to provide assistance to Sri Lanka in overcoming the current economic crisis. Meanwhile, Bloomberg said: “Sri Lanka stocks rallied, marking their first day of gains since April 5, after the World Bank said it will allocate funds to ease the nation’s economic crisis.”

The Colombo All-Share Index ended 6.8% higher, after losing about 15% in the past two days. The bluechip S&P Sri Lanka 20 Index surged 14%. Trading had to be suspended in the prior two sessions within minutes of the open as the S&P gauge fell by its daily set limit.

Adviser of the World Bank in Sri Lanka Husam Abudagga, Practice Leader for Human Development Rene Solano, Finance Minister Ali Sabry, Trade & Samurdhi Development Minister Shehan Semasinghe, Secretary to the President Gamini Senarath, Finance Ministry Secretary K.M.M. Siriwardena, Labour Ministry Secretary Mapa Pathirana, Deputy Secretary to the Treasury R.M.P. Rathnayake and Director-General of National Planning Department R.H.W.A. Kumarasiri were also present at the meeting.