| Project Detail |
The program adopts a programmatic policy-based loan (PBL) modality with two subprograms of $200 million each to properly sequence reforms and ensure the needed flexibility while implementing multi-year policy reforms in a crisis period. Subprogram 1 prioritizes immediate reforms to enhance the crisis management regulatory framework and stabilizing the financial sector while subprogram 2 prioritizes follow-on reforms to build a resilient and inclusive financial system. It will be supported by an attached transaction technical assistance (TA) for subprogram 2 and post-program partnership framework (PPPF) activities. A programmatic approach that combines policy-based loans, TA, and knowledge support was selected as it allows complex and challenging reforms to be addressed comprehensively.
Project Name Financial Sector Stability and Reforms Program (Subprogram 1)
Project Number 56285-001
Country / Economy Sri Lanka
Project Status Approved
The program aims to stabilize and strengthen the Sri Lankan financial sector following the countrys sovereign debt and balance-of-payment crisis to mitigate further deterioration of the banking sector and to prevent a financial crisis. It is in line with the governments objective to safeguard the financial sector and supports the government and central bank by enhancing crisis response preparedness, strengthening crisis management tools and implementing reforms that (i) strengthen the stability and governance of the banking sector, (ii) strengthen the asset quality of the banking sector and (iii) ensure continued access to finance and supply of credit which is critical for poverty alleviation, income generation and economic recovery. |
