Economic news

World Bank announces $150 million aid package for Sri Lanka amid financial crisis

2023.11.10 05:17



Faris Hadad-Zervos, the World Bank’s country director, announced a $150 million aid package to support Sri Lanka’s financial stability as the country grapples with a severe economic crisis. The crisis was triggered by a sharp devaluation of the rupee, which fell by nearly 50% last year following the government’s default on its $46 billion foreign debt. This economic downfall resulted in acute shortages of food, fuel, and medicine, sparking violent protests that led to the resignation and departure of then-president Gotabaya Rajapaksa.

The World Bank funds are designated for a deposit insurance scheme designed to protect small savers possessing less than 1.1 million rupees ($3,400), comprising 90% of deposits. This move comes as an effort to bolster confidence among savers and stabilize the nation’s financial system.

Despite an anticipated economic contraction in 2023, there are signs of recovery in Sri Lanka’s economy. The inflation rate has fallen below two percent after peaking at nearly 70% during the height of the crisis over a year ago.

Earlier this year, Sri Lanka secured a $2.9 billion bailout from the International Monetary Fund (IMF) over a period of 48 months. However, the disbursement of a $330 million installment has been delayed since September due to unresolved issues related to foreign debt restructuring. This delay underscores the ongoing challenges Sri Lanka faces in managing its foreign debt obligations and working towards economic recovery.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 84,300.59 0.06%
ethereum
Ethereum (ETH) $ 1,942.76 0.99%
tether
Tether (USDT) $ 1.00 0.00%
xrp
XRP (XRP) $ 2.41 2.80%
bnb
BNB (BNB) $ 617.57 5.35%
solana
Solana (SOL) $ 135.59 1.44%
usd-coin
USDC (USDC) $ 1.00 0.00%
cardano
Cardano (ADA) $ 0.754087 2.60%
dogecoin
Dogecoin (DOGE) $ 0.176451 3.45%
tron
TRON (TRX) $ 0.22184 0.16%
staked-ether
Lido Staked Ether (STETH) $ 1,942.27 1.26%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 84,218.56 0.10%
pi-network
Pi Network (PI) $ 1.45 3.89%
chainlink
Chainlink (LINK) $ 14.10 2.16%
leo-token
LEO Token (LEO) $ 9.71 0.70%
the-open-network
Toncoin (TON) $ 3.44 17.25%
stellar
Stellar (XLM) $ 0.275957 0.39%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,327.30 1.09%
usds
USDS (USDS) $ 1.00 0.02%
hedera-hashgraph
Hedera (HBAR) $ 0.194077 1.83%
avalanche-2
Avalanche (AVAX) $ 19.16 2.14%
shiba-inu
Shiba Inu (SHIB) $ 0.000013 0.86%
sui
Sui (SUI) $ 2.37 1.93%
litecoin
Litecoin (LTC) $ 93.12 1.64%
bitcoin-cash
Bitcoin Cash (BCH) $ 345.21 5.56%
polkadot
Polkadot (DOT) $ 4.38 4.31%
mantra-dao
MANTRA (OM) $ 6.61 5.60%
weth
WETH (WETH) $ 1,942.87 1.04%
ethena-usde
Ethena USDe (USDE) $ 0.999866 0.05%
bitget-token
Bitget Token (BGB) $ 4.46 0.92%
binance-bridged-usdt-bnb-smart-chain
Binance Bridged USDT (BNB Smart Chain) (BSC-USD) $ 0.999957 0.06%
hyperliquid
Hyperliquid (HYPE) $ 14.41 3.24%
whitebit
WhiteBIT Coin (WBT) $ 28.92 1.25%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,064.02 1.01%
monero
Monero (XMR) $ 211.88 0.91%
uniswap
Uniswap (UNI) $ 6.24 2.92%
susds
sUSDS (SUSDS) $ 1.04 0.04%
aptos
Aptos (APT) $ 5.40 3.72%
dai
Dai (DAI) $ 0.999855 0.01%
near
NEAR Protocol (NEAR) $ 2.68 2.07%
pepe
Pepe (PEPE) $ 0.000007 3.03%
internet-computer
Internet Computer (ICP) $ 5.85 3.66%
okb
OKB (OKB) $ 46.55 0.90%
ondo-finance
Ondo (ONDO) $ 0.884532 2.20%
ethereum-classic
Ethereum Classic (ETC) $ 18.01 0.03%
gatechain-token
Gate (GT) $ 21.74 1.73%
aave
Aave (AAVE) $ 174.35 0.72%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 84,278.58 0.10%
mantle
Mantle (MNT) $ 0.754863 3.15%
official-trump
Official Trump (TRUMP) $ 12.22 3.03%