The World Bank Board of Directors have approved a $700 million financing for Sri Lanka’s budgetary and welfare support from its concessionary International Development Association (IDA). 

The Board discussed the new Country Partnership Framework (CPF) for Sri Lanka on June 28, which aims to help restore economic and financial sector stability in the crisis-hit island nation.

Under the CPF, $500 million will go to the Sri Lanka Resilience, Stability and Economic Turnaround (RESET) Development Policy Operation, which will help improve economic governance, enhance growth and competitiveness, and protect the poor and vulnerable. 

Another $200 million were approved for the Social Protection Project, an income supplement program seeking better-targeted income and livelihood opportunities for the poor and vulnerable.

As of June 26, the active World Bank portfolio for Sri Lanka consists of International Bank for Reconstruction and Development (IBRD) financing worth $1.09 billion and IDA financing worth $1.17 billion. IBRD deemed Sri Lanka unworthy of any additional funding. Hence only IDA concessional financing was approved.