World Bank doubles assistance to Sri Lanka over next three years

Finance-ministry

July 13, 2017 (LBO) – Sri Lanka will receive US1,340 million dollars in financial and technical assistance through a transitional support facility of the International Development Association (IDA), a member of the World Bank group, over the next three year period starting from July, the finance ministry said.

Previously Sri Lanka received US 660 million dollars IDA support for the period from year 2014 to 2017.

The facility comes as financial assistance for development projects and technical assistance for analytical and advisory services, the World Bank Country Director for Sri Lanka and Maldives Idah Z Riddihough, who called on the Minister of Finance Mangala Samaraweera, said.

A public sector efficiency project and country readiness for public private partnerships (PPP) are two projects proposed to be implemented by the ministry with this support.

The Country Director also discussed the progress of WB-assisted ongoing and proposed projects in the country.

She appreciated Sri Lanka’s economic performance despite significant challenges and said that it remained broadly satisfactory in 2016 and early 2017.

“The WB recognizes the corrective policy measures taken in 2016 following expansionary fiscal and monetary policies implemented in the previous year as early signs of stabilization,”

“A combination of increase in revenues and rationalization of expenditures helped reducing the fiscal deficit from a reported 7.6 percent in 2015 to a 5.4 percent of GDP in 2016.”