Debt crisis: No direct UK help

The UK has so far not provided direct assistance to Sri Lanka, struggling to cope up with the balance of payment crisis.UK Development Minister Vicky Ford has explained that their support would be directed, through international lending and relief agencies. Minister Ford stated the UK position on Tuesday (06) in response to a query raised by Labour member, Sam Tarry, regarding aid to people affected by the economic crisis Minister Ford said: “The UK is closely monitoring the political, economic and security situation in Sri Lanka, including food security and livelihoods. The UK is providing economic support, through multilateral institutions, like the International Monetary Fund (IMF), the World Bank (WB) and the United Nations (UN).

The UK has the joint fifth largest shares in the IMF and is a major contributor to the UN and the WB. The UK has a significant voice in international debt fora and we are working with other Paris Club members on solutions to Sri Lanka’s unsustainable debt levels.

“The WB has reprogrammed US $400 million, in financial assistance, to provide economic and health sector support. We are working to support the UN and its agencies in their coordinated response to the Humanitarian Needs and Priorities (HNP) Plan. This called for US $47.2 million to provide life-saving assistance to 1.7 million people who are most at risk and need immediate support. The UN Central Emergency Response Fund (CERF) has announced US $5 million for an urgent response to the economic crisis in Sri Lanka. The UK is a longstanding partner to the CERF and is the largest overall donor, contributing more than $1.7 billion to the fund, since its inception 15 years ago. We are exploring additional options to respond to Sri Lanka’s humanitarian needs.”