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World Bank approves USD 700mn in budgetary and welfare support for Sri Lanka

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The World Bank yesterday (28) approved USD 700 million in budgetary and welfare support for Sri Lanka.This is the biggest funding infusion into the country since the International Monetary Fund (IMF) bailout package approved in March.

Through this funding, the World Bank said it aims to help Sri Lanka implement foundational reforms that restore macroeconomic stability and sustainability, mitigate the impact of current and future shocks on the poor and vulnerable, and support an inclusive and private sector-led recovery and growth path.

Thereby, USD 500 million of the funds will be allocated for the ‘Sri Lanka Resilience, Stability & Economic Turnaround (RESET) Development Policy Operation’ which will support reforms that improve economic governance, enhance growth and competitiveness, and protect the poor and vulnerable.This operation will provide budgetary support in two equal tranches against agreed prior actions.

Meanwhile, welfare support of USD 200 million will be earmarked for the ‘Social Protection Project’ which seeks to support Sri Lanka in providing better-targeted income and livelihood opportunities to the poor and vulnerable and improving the responsiveness of the social protection program.

The funding was green-lighted when the World Bank Group’s Board of Executive Directors met for a discussion on the new Country Partnership Framework (CPF) for Sri Lanka on Thursday.

The CPF comes at a time when Sri Lanka is navigating its worst economic crisis since its independence from Britain in 1948 after its foreign exchange dipped to record lows, resulting in its first foreign debt default in 2022.

Covering the years 2024-2027, the CPF lays out a two-phased approach that starts with a focus on urgent macro-fiscal and structural reforms and support to protect the human capital and most vulnerable population.

In March 2023, the IMF approved nearly USD 3 billion which Sri Lanka expects will bring additional funding of up to USD 4 billion from the World Bank, Asian Development Bank and other multilateral bodies.

Speaking on the USD 700 million in financing green-lighted for the country, the World Bank Country Director for Sri Lanka  Faris H. Hadad-Zervos said, the CPF offers a ‘historic opportunity’ for deep reforms to reset the country’s economic storyline.

“Through a phased approach, the World Bank Group strategy focuses on early economic stabilization, structural reforms, and protection of the poor and vulnerable,” Zervos said. If sustained, these reforms can put the country back on the path towards a green, resilient and inclusive development, he added.



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War-linked power crunch pushes Lanka to four-day week

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(AFP ) Millions of Sri Lankans enjoyed a government-ordered extra day off on Wednesday as the island nation battles an energy crisis triggered by the Middle East war.

Rail and bus stations were largely deserted as most state institutions, schools and universities shifted to a four-day working week.

“I am really enjoying the mid-week break because it is a fully paid holiday,” said housing ministry official Prarthana Perera, 40.

Her office, like many government departments in Battaramulla — the capital’s main administrative hub — was closed.

Banks operated on shorter hours, while many private firms introduced work-from-home arrangements, industry bodies said, urging members to help curb energy use.

Sri Lanka has already raised fuel prices by a third since the United States and Israel began bombing Iran, triggering retaliatory attacks that have disrupted global energy supplies.

About half of Sri Lanka’s electricity is generated by coal and diesel.

The cabinet has set a target of cutting electricity consumption by 25 percent, ordering street lamps switched off and asking civil servants to use table fans instead of power-hungry air conditioners.

Shipping executive Varuna Perera welcomed the day off but was uncertain of its impact.

“It will not be effective in the long term,” Perera said. “But the government will have a breather for a couple of weeks, to save some energy.”

Environmental lawyer Ravindranath Dabare was more sceptical, arguing the move would have limited impact as those needing government services would have to travel on other days.

“We can’t close hospitals… the doctors and health officials can’t work from home,” Dabare said.

The influential Chamber of Commerce said it had urged members to follow government guidelines or adopt remote work where possible, if

“business continuity can be effectively maintained”.

And Sri Lanka’s leading technology firm WSO2 made working from home mandatory for its 500 employees on Tuesdays and Thursdays.

“This is our way of contributing to the national cause,” WSO2 spokeswoman Zaithoon Bin-Ahamed told AFP.

Media Minister Nalinda Jayatissa said the government had yet to assess the impact of the energy-saving measures, but expected broad compliance.

Sri Lanka has been running coal and diesel power plants at full capacity to meet electricity demand.

President Anura Kumara Dissanayake urged electric vehicle owners not to charge their cars overnight, as they would add a surge to an already strained grid.

He asked motorists instead to plug in during the day, when excess solar power is available.

Officials said the country’s diesel stocks are sufficient to last until mid-May, while petrol could last a week longer.

The government is seeking oil supplies from Russia and hopes to tap Iran for crude oil, Jayatissa said.

Political commentator Kusal Perera said the crisis also presented scope to boost productivity across the state sector.

“They must use this opportunity to have a national dialogue on improving productivity,” he told AFP. “We have to address the inefficiency in the public sector.”

By Amal JAYASINGHE

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Lanka to swelter through April and May, Met Dept warns

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Sri Lanka is set to experience continued hot weather conditions until May, the Department of Meteorology has warned.

Additional Director General of Meteorology Ajith Wijemanna said the current heatwave is expected to ease only slightly once the southwest monsoon sets in toward the latter part of May.

Wijemanna explained that the island is currently in the first inter-monsoon period, characterised by low wind speeds and shifting wind directions, which contribute to rising temperatures. Reduced cloud cover and the sun’s direct position over the country are causing increased heating of land and sea, generating heat waves and warmer atmospheric conditions.

He cautioned that the hottest period of the day will be between 11:00 a.m. and 4:00 p.m., urging the public to limit outdoor activities during these hours.

Authorities also advised drinking plenty of water, wearing light-colored clothing, and avoiding prolonged exposure to direct sunlight, particularly for children and the elderly.The Meteorology Department further noted that rainfall may remain limited in the coming months, with drier conditions possible due to climate variability.

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Pathfinder Foundation launches Proposal for a National Security Strategy for Sri Lanka

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The Pathfinder Foundation launched a proposal for a National Security Strategy for Sri Lanka—2026, emphasising the urgent need for a comprehensive and state-led national security framework.

The proposed strategy contends that an effective National Security Strategy (NSS) must be based on a robust National Security Policy, which provides the long-term framework for protecting the country’s sovereignty, stability, and development in an increasingly uncertain global environment. The Pathfinder Foundation’s initiative, developed through consultations with academics, retired military officers, legal experts, and policy specialists, seeks to stimulate national discussion and support the formulation of an official state policy. The launch event was attended by those involved in preparing this proposal, heads of local think tanks, and media representatives.

Chairman of the Pathfinder Foundation, Amb. (Retd.) Bernard Goonetilleke, in his presentation of the report, emphasised that many major and middle powers, including the United States, China, the Russian Federation, the United Kingdom, Germany, Sweden, and Japan, have developed formal national security strategies. He pointed out that several South Asian and Southeast Asian countries, including India, Pakistan, Bangladesh, Nepal, Malaysia, Thailand, and Singapore, also rely on NSS, whereas Sri Lanka still lacks a single, officially adopted National Security Policy (NSP) or a National Security Strategy to guide long-term strategic planning.

The report highlights key strategic priorities across several sectors, including good governance, internal security, cybersecurity, energy and food security, health security, human capital development, and environmental protection. It also employs the internationally recognised DIME framework (Diplomacy, Information, Military, and Economy) to guide the coordinated use of national power in advancing Sri Lanka’s interests. Among its main institutional recommendations are establishing a fully legislated National Security Council, creating a National Security Secretariat, and officially appointing a National Security Advisor to coordinate policy and implementation across the government.

 The full text of the report is available https://pathfinderfoundation.org/publications, and your comments a/ welcome via pm@pathfinderfoundation.org

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