Tuesday, 21st September 2021

World Bank approves 25 million US dollar loan to boost public sector

Colombo, Dec 18 (BAN/ AD): World Bank Country Director for Nepal, Sri Lanka and Maldives Idah Pswarayi-Riddihough has said that 25 million US dollar loan has been approved to improve the transparency and efficiency of core government and public financial management. This will strengthen the institutional capacity of the Ministry of Finance.

She said “PSEP builds on long-standing collaborative government and World Bank work in the area of public financial management and supports the priority reform areas of the Government of Sri Lanka”

Maturity of loan is 28 years with a grace period of 11 years. The European Union will be a partner in PSEP with a technical assistance grant of 10 million euros to help strengthen core public finance and accountability institutions.

The Sri Lankan government is currently providing a fiscal stimulus package which many analysts worry is not sustainable.

 

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