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World Bank rules out bridging finance to Sri Lanka until it gets its policy framework in order

Published

4 years ago

2022/05/26

The World Bank has ruled out bridging finance or new loan commitments to crisis-hit Sri Lanka until the nation’s economy sets up an adequate macroeconomic policy framework.

The World Bank issued a report on Tuesday following claims that the Washington-based institution was planning to support Sri Lanka to overcome the financial crisis in the form of a bridge loan or new loan commitments.

However, the WB has said that it is reshuffling the already allocated resources to provide essential medicines and other cash assistance to the vulnerable.

“Recent media reports have inaccurately stated that the World Bank is planning support for Sri Lanka in the form of a bridge loan or new loan commitments among other incorrect assertions,” the WB has said in a statement.

“We are concerned for the people of Sri Lanka and are working in coordination with the IMF and other development partners in advising on appropriate policies to restore economic stability and broad-based growth. Until an adequate macroeconomic policy framework is in place, the World Bank does not plan to offer new financing to Sri Lanka,” it said.

It expressed hope that Sri Lanka is making continuous efforts towards economic stability.

“We are currently repurposing resources from previously approved projects to help the government with some essential medicines, temporary cash transfers for poor and vulnerable households, school meals for children of vulnerable families, and support for farmers and small businesses,” the statement said.

Sri Lanka is near bankruptcy and has severe shortages of essentials from food, fuel, medicines and cooking gas to toilet paper and matchsticks. For months, people have been forced to stay in long lines to buy the limited stocks.

Sri Lanka has suspended repayment of about $7 billion in foreign loans due this year out of $25 billion to be repaid by 2026. The country’s total foreign debt is $51 billion.

Sri Lanka, in the midst of its worst economic crisis, has started a negotiating programME with the IMF.

The country however is in need of $4-5 billion bridging finance to arrest the crisis where shortages of essentials had led to street rioting.

Sri Lanka’s economic crisis has created political unrest with a protest occupying the entrance to the president’s office, demanding his resignation continuing for the past 40 days. The crisis has already forced Prime Minister Mahinda Rajapaksa, the elder brother of the President, to resign on May 9.

An inflation rate spiralling towards 40 percent, shortages of food, fuel and medicines and rolling power blackouts have led to nationwide protests and a plunging currency, with the government short of the foreign currency reserves it needed to pay for imports.

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Colombo Stock Exchange (GL 12) donates LKR 25 million to the “Rebuilding Sri Lanka” Fund

Published

6 hours ago

2026/01/24

Priyan

The Colombo Stock Exchange (GL 12) has contributed LKR 25 million to the Rebuilding Sri Lanka Fund.

The cheque was handed over to the Secretary to the President Dr. Nandika Sanath Kumanayake by the Chairman of the Colombo Stock Exchange, Dimuthu Abeyesekera, the Chief Executive Officer Rajeeva Bandaranaike and Senior Vice Chairman Kusal Nissanka at the Presidential Secretariat.

News

Karu argues against scrapping MPs’ pension as many less fortunate members entered Parliament after ’56

Published

14 hours ago

2026/01/24

Thilina Walpola

Karu Jayasuriya

Former Speaker of Parliament Karu Jayasuriya has written to President Anura Kumara Dissanayake expressing concerns over the proposed abolition of MPs’ pensions.The letter was sent in his capacity as Patron of the Former Parliamentarians’ Caucus.

In his letter, Jayasuriya noted that at the time of Sri Lanka’s independence, political participation was largely limited to an educated, affluent land-owning elite. However, he said a significant social transformation took place after 1956, enabling ordinary citizens to enter politics.

He warned that under current conditions, removing parliamentary pensions would effectively confine politics to the wealthy, business interests, individuals engaged in illicit income-generating activities, and well-funded political parties. Such a move, he said, would discourage honest social workers and individuals of modest means from entering public life.

Jayasuriya also pointed out that while a small number of former MPs, including himself, use their pensions for social and charitable purposes, the majority rely on the pension as a primary source of income.

He urged the President to give due consideration to the matter and take appropriate action, particularly as the government prepares to draft a new constitution.The Bill seeking to abolish pensions for Members of Parliament was presented to Parliament on 07 January by Minister of Justice and National Integration Dr. Harshana Nanayakkara.

News

Johnston, two sons and two others further remanded over alleged misuse of vehicle

Published

14 hours ago

2026/01/24

Thilina Walpola

Former Minister Johnston Fernando and others being escorted out of the Wattala Magistrate Court premises yesterday

Five suspects, including former Minister Johnston Fernando and his two sons, who were arrested by the Financial Crimes Investigation Division (FCID), were further remanded until 30 January by the Wattala Magistrate’s Court yesterday.

The former Minister’s , sons Johan Fernando and Jerome Kenneth Fernando, and two others, were arrested in connection with the alleged misuse of a Sathosa vehicle during Fernando’s tenure as Minister.

Investigations are currently underway into the alleged misuse of state property, including a lorry belonging to Lanka Sathosa, which reportedly caused a significant financial loss to the state.

In connection with the same incident, Indika Ratnamalala, who served as the Transport Manager of Sathosa during

Fernando’s tenure as Minister of Co-operatives and Internal Trade, was arrested on 04 January.

After being produced before the Wattala Magistrate’s Court, he was ordered to be remanded in custody until 09 January.The former Sathosa Transport Manager was remanded on charges of falsifying documents.