World Bank has no plan to offer new financing to crisis-hit Sri Lanka: Reports
New Delhi, July 29: The World Bank has no plans to offer new financing to crisis-hit Sri Lanka until an adequate macroeconomic policy framework is in place.
In a statement on Thursday, the lender stated that Sri Lanka needed to implement structural reforms that focus on economic stabilisation and address the main causes of its crisis, which had deprived it of foreign exchange and led to food, fuel, and medicine shortages.
"The World Bank Group is deeply concerned about the dire economic situation and its impact on the people of Sri Lanka," it stated.
According to the bank, it is repurposing resources from existing loans to assist alleviate shortages of essential items such as medicine, cooking gas, fertiliser, meals for children, and cash for vulnerable households.
The bank stated that it was working closely with the government to establish control and fiduciary oversight to ensure fair distribution.
Meanwhile, it is being reported that Sri Lanka's former president Gotabaya Rajapaksa has extended his stay in Singapore for another 14 days.
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Rajapaksa was issued a 14-day visit pass when he arrived at the Changi Airport in Singapore from the Maldives on July 14. His pass to the city-state will now expire on August 11, sources reported.
73-year-old Gotabaya Rajapaksa had gone into hiding after crowds of protesters stormed his residence on July 9.
Ranil Wickremesinghe was sworn in as President of Sri Lanka on July 21 in Parliament before Chief Justice Jayantha Jayasuriya. He was elected as president in an election held in Parliament a day prior to the swearing-in ceremony.
Earlier, Wickremesinghe was appointed as the interim president of Sri Lanka after Gotabaya Rajapaksa fled abroad after his palace was stormed by angry protesters amid the unprecedented economic crisis.
The country is facing a severe shortage of fuel and other essential supplies and is in the throes of its worst-ever economic crisis with soaring inflation. The oil supply shortage has forced schools and government offices to close until further notice.
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-PTC News
