The World Bank Group has reaffirmed its commitment to support Sri Lanka in a letter addressed to the newly elected President, Anura Dissanayake. The letter, signed by senior regional officers overseeing the country, emphasized the institution’s readiness to assist the new administration in its efforts to drive economic recovery.
The World Bank has been providing budget support to Sri Lanka, especially after the central bank’s policies led to the worst currency crisis in the country’s history. The crisis was triggered by rate cuts and inflationary open market operations in 2020, followed by a failed attempt to float the currency in 2022 due to a surrender rule.
Martin Raiser, Vice President for the South Asia Region, and Riccardo Puliti, Vice President for the Asia and Pacific Region of the International Finance Corporation (IFC), said in the letter, “The World Bank Group and our entire country team, led by our country manager, Gevorg Sargsyan based in Colombo, stand ready to support you and the new administration.”
They also stressed the World Bank’s commitment to fostering inclusive growth, economic recovery, and addressing the needs of the poor and vulnerable in Sri Lanka.
The World Bank’s budget support is part of an IMF-backed program, tied to key structural reforms aimed at stabilizing the economy.