World Bank doles out $700 million to cash-strapped Sri Lanka

Sri Lanka, which has been reeling under its worst financial crisis, has got some relief from the World Bank to keep the wheel of its economy running. The World Bank has approved $700 million in budgetary and welfare support to the island nation on Thursday.The funding to Sri Lanka by the World Bank is biggest since an International Monetary Fund (IMF) deal in March.Phased approachOf the total fund, about $500 million will be allocated for budgetary support, while the remaining $200 million will be for welfare support earmarked for those worst affected by the crisis."Through a phased approach, the World Bank Group strategy focuses on early economic stabilization, structural reforms, and protection of the poor and vulnerable," Faris Hadad-Zervos, World Bank's country director for Sri Lanka, said in a statement.Zervos further said, "If sustained, these reforms can put the country back on the path towards a green, resilient and inclusive development."Sri Lanka expects that the IMF's approved $3 billion bailout will bring additional funding of up to $4 billion from the World Bank, the Asian Development Bank and other multilateral agencies.Sri Lanka economic crisisSri Lanka has been hit by the worst economic crisis since its independence from Britain in 1948 after the country's foreign exchange hit record lows and triggered its first foreign debt default in 2022.The country is expected to release a domestic debt restructuring program this week which will focus on how Sri Lanka will push forward reworking its debt with bondholders and bilateral creditors including India, Japan and China.With inputs from ReutersRead all the Latest News, Trending News, Cricket News, Bollywood News,India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.