World Bank approves Sri Lanka’s concessional funding request

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FILE PHOTO: Atrium is seen at World Bank headquarters in Washington

COLOMBO (Reuters) – The World Bank has approved crisis-hit Sri Lanka’s request to access concessional financing from the International Development Association so as to help stabilise its economy, the lender said on Tuesday.

Soaring inflation, a weakening currency and low foreign exchange reserves have left the island nation of 22 million struggling to pay for imports of essentials such as food, fuel and medicine.

Through the IDA, Sri Lanka will receive concessional financing, technical assistance, and policy advice from the World Bank to implement reforms towards economic recovery.

Access to IDA’s concessional financing would also alleviate debt service pressures as it offers more favourable terms, the World Bank said in a statement.

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(Reporting by Uditha Jayasinghe; Writing by Sudipto Ganguly; Editing by Clarence Fernandez)