The World Bank has approved $700 million in funding to help Sri Lanka recover from the current economic crisis and provide relief to the poor and vulnerable. This is the biggest tranche of financing since the IMF deal in March. Cash-strapped Sri Lanka is currently in the midst of its worst economic crisis in history, having contracted by over seven per cent in 2022. The World Bank financing comprises $500 million of budgetary support and $200 million for social security.

The World Bank's Board of Directors discussed the new Country Partnership Framework (CPF) for Sri Lanka, which aims to help restore economic and financial sector stability and build a strong foundation for a green, resilient, and inclusive recovery.

The CPF comes at a time when the country is navigating a severe economic crisis that is having devastating impacts on people’s lives and livelihoods. The World Bank's strategy focuses on early economic stabilization, structural reforms, and protection of the poor and vulnerable. If sustained, these reforms can put the country back on the path towards a green, resilient and inclusive development.

A strong and engaged private sector is also seen as crucial for Sri Lanka to overcome the economic crisis and provide job and livelihood opportunities to those affected. The World Bank's $700 million in financing is part of a larger effort to help Sri Lanka recover from its economic crisis and provide relief to those in need. With the help of this funding, the country can begin the process of structural reforms that will bring long-term stability and prosperity.