Press briefing of Cabinet Decision taken on 2023-04-24

Securing World Bank Funding for Financial Sector Safety Net Project

- Discussions have been held with the World Bank regarding the lending facility from the World Bank in favour of the Sri Lanka Deposit Insurance and Liquidity Support Fund under the Sri Lanka Financial Sector Safety Net Project. The proposed loan amount is expected to be used to strengthen the financial and institutional capacity of the Sri Lankan Financial Sector Safety Net focusing the Deposit Insurance Scheme with the aim of increasing the resilience and efficiency of the financial sector in order to safeguard stability and resume a healthy financial intermediation. Accordingly, taking into consideration the proposal made by the Hon. President in his capacity as the Minister of Finance, Economic Stabilization and National Policies, it was decided to grant approval of the Cabinet in principle to take further steps to obtain a loan of US$ 150 million from the World Bank as an Investment Project Financing.