New Plan

Sri Lanka has been urged to devise a new Poverty Reduction Strategy (PRS) with the World Bank following the donor meeting in May. Sri Lanka has been urged to devise a new Poverty Reduction Strategy (PRS) with the World Bank following the donor meeting in May. Crucial to this would be working out a joint mechanism for distributing aid to the North-East region.

An economic team headed by Finance Minister Sarath Amunugama, met top World Bank officials during the IMF-World Bank spring meetings earlier this month.

The need for a new Poverty Reduction Strategy covering the entire country was a point brought forward by World Bank Vice – President Praful Patel, when he met the Finance Minister in Washington, Lanka Business Report (LBR) learns.

At the moment Sri Lanka does not have a comprehensive economic framework to take the country forward after the UPFA administration threw out the previous PRS, which was better known as the ‘Regain Sri Lanka’ document.

Without a PRS the World Bank is unable to give budgetary support to the government, but can only give ad hoc project finance.

World Bank officials have also noted