Economic news

Exclusive-World Bank set to approve $700 million for Sri Lanka next week -sources

2023.06.19 06:59

2/2

© Reuters. FILE PHOTO: A worker cleans a hotel’s window, as a national flag waves at a seafront tent camp that became the focal point of months-long nationwide demonstrations, as the deadline police asked protesters to leave the camp is approaching, amid the country

2/2

By Uditha Jayasinghe

COLOMBO (Reuters) – The World Bank is likely to approve $700 million in budgetary and welfare support for Sri Lanka at its next board meeting on June 28, sources told Reuters, the biggest funding tranche for the crisis-hit island nation since an IMF deal in March.

The economy of the country of 22 million is expected to shrink 2% this year before returning to growth next year, the government estimates, following last year’s record contraction of 7.8% after foreign exchange reserves hit record lows.

The International Monetary Fund approved a bailout of nearly $3 billion in March, which Sri Lanka expects will bring additional funding of up to $4 billion from the World Bank, the Asian Development Bank and other multilateral agencies.

Of the proposed World Bank funding, $500 million will be for budgetary support and is likely to come in two tranches of $250 million each, one of the sources, from the World Bank, said.

All four sources, from the World Bank and the Sri Lankan finance ministry, sought anonymity as they were not authorised to talk to the media.

The first tranche is likely to be disbursed immediately after board approval with the next possibly in October, as the bank watches the progress of Sri Lanka’s debt restructuring and the first review of the IMF programme, due in September, the World Bank source added.

The remaining $200 million will be earmarked for programmes to assist the poor, whose numbers have doubled to 25% of the population since the onset of the Indian Ocean nation’s worst economic crisis early last year, another World Bank source said.

“Households that have registered for support will be ranked … and the lowest 2 million will be eligible for support,” the source added.

The World Bank and the finance ministry did not immediately respond to requests for comment.

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 97,299.07 0.92%
ethereum
Ethereum (ETH) $ 3,317.97 3.05%
tether
Tether (USDT) $ 0.999726 0.16%
solana
Solana (SOL) $ 248.01 4.09%
bnb
BNB (BNB) $ 651.01 1.35%
xrp
XRP (XRP) $ 1.37 7.42%
dogecoin
Dogecoin (DOGE) $ 0.415004 6.60%
usd-coin
USDC (USDC) $ 0.99836 0.14%
cardano
Cardano (ADA) $ 0.983352 8.44%
staked-ether
Lido Staked Ether (STETH) $ 3,316.23 3.11%
tron
TRON (TRX) $ 0.207064 3.49%
avalanche-2
Avalanche (AVAX) $ 40.51 4.25%
the-open-network
Toncoin (TON) $ 6.02 6.63%
stellar
Stellar (XLM) $ 0.500708 1.35%
shiba-inu
Shiba Inu (SHIB) $ 0.000025 8.82%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,942.68 2.71%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 97,184.04 0.77%
polkadot
Polkadot (DOT) $ 8.46 11.56%
chainlink
Chainlink (LINK) $ 17.51 2.78%
bitcoin-cash
Bitcoin Cash (BCH) $ 500.14 3.45%
weth
WETH (WETH) $ 3,332.14 2.66%
sui
Sui (SUI) $ 3.32 5.60%
near
NEAR Protocol (NEAR) $ 6.90 6.31%
pepe
Pepe (PEPE) $ 0.00002 5.54%
leo-token
LEO Token (LEO) $ 8.56 0.38%
litecoin
Litecoin (LTC) $ 94.61 6.57%
aptos
Aptos (APT) $ 12.04 8.88%
uniswap
Uniswap (UNI) $ 10.66 2.36%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,503.34 2.80%
hedera-hashgraph
Hedera (HBAR) $ 0.139111 9.17%
internet-computer
Internet Computer (ICP) $ 11.18 3.45%
usds
USDS (USDS) $ 1.00 0.50%
crypto-com-chain
Cronos (CRO) $ 0.183558 8.41%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.547057 6.78%
ethereum-classic
Ethereum Classic (ETC) $ 27.83 7.20%
render-token
Render (RENDER) $ 7.87 0.79%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.52 3.13%
bittensor
Bittensor (TAO) $ 524.65 2.53%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.14%
kaspa
Kaspa (KAS) $ 0.148379 5.49%
bonk
Bonk (BONK) $ 0.000046 5.04%
whitebit
WhiteBIT Coin (WBT) $ 24.21 2.25%
dai
Dai (DAI) $ 0.998596 0.07%
vechain
VeChain (VET) $ 0.042396 1.08%
arbitrum
Arbitrum (ARB) $ 0.83322 5.72%
filecoin
Filecoin (FIL) $ 5.46 2.23%
blockstack
Stacks (STX) $ 2.15 1.77%
celestia
Celestia (TIA) $ 7.62 6.30%
cosmos
Cosmos Hub (ATOM) $ 8.31 6.89%
mantra-dao
MANTRA (OM) $ 3.59 2.43%