COLOMBO: Sri Lanka will sign an agreement with the World Bank for $500 million in financial support following the country’s cabinet approved it on Tuesday.
Reuters reported that it will be the major funding tranche for the crisis-hit Sri Lanka since an International Monetary Fund (MF) deal in March.
World Bank will Provide $500 Million to Sri Lanka
The country of 22 million is emerging out of its worst financial crisis in 70-years and its economy is likely to shrink 2 percent this year before returning to increase next year, after last year’s record reduction of 7.8%.
Earlier, the World Bank is likely to approve $700 million in budgetary and welfare support for the Iceland nation at its board meeting on June 28. It added that $200 million will be for welfare programmes in the country.
The government of Sri Lanka said on Tuesday that funding from the World Bank would come in two tranches.
