The Sri Lankan government has been granted approval by the Cabinet of Ministers to enter into discussions with the World Bank for a loan of US$ 200 million for the purpose of implementing social security programs. The loan is intended to help the country build a strong social safety net to protect the most vulnerable groups in society.
The Sri Lankan government has identified the implementation of a robust social safety net as a priority under the Extended Fund Facility (EFF) Program of the International Monetary Fund. The proposed policy actions under the EFF include the establishment of social security programs, which will be supported by the World Bank loan.
The social security program is designed to be implemented under three key components, including providing financial subsidies to targeted families, piloting programs to improve opportunities for the poor and vulnerable, and strengthening the existing social security system.
The Cabinet of Ministers has approved the proposal presented by the President, who is also the Minister of Finance, Economic Stabilization and National Policy, to implement the project and negotiate debt settlement with the World Bank for the purpose of funding the program.
Overall, the proposed loan from the World Bank is expected to significantly contribute to the development of a strong social safety net in Sri Lanka and provide much-needed support to the most vulnerable members of society.