Military personnel in ceremonial uniform lower the Sri Lanka national flag at Galle Face Green in Colombo on July 23, 2022. (ARUN SANKAR / AFP)
COLOMBO - The World Bank has approved crisis-hit Sri Lanka's request to access concessional financing from the International Development Association so as to help stabilize its economy, the lender said on Tuesday.
Soaring inflation, a weakening currency and low foreign exchange reserves have left the island nation of 22 million struggling to pay for imports of essentials such as food, fuel and medicine.
Through the IDA, Sri Lanka will receive concessional financing, technical assistance, and policy advice from the World Bank to implement reforms towards economic recovery.
Access to IDA's concessional financing would also alleviate debt service pressures as it offers more favourable terms, the World Bank said in a statement.