Tag:World Bank

As the two-week ceasefire takes effect, markets will be watching closely for signs of sustained de-escalation. Yet even if fighting subsides, the economic scars of the Iran war may take far longer to heal, the three organisations said.

Experts point out that recovery fund and planned reconstruction must also prioritise restoring agricultural capacity, irrigation and roads – because Sri Lanka’s food security and export-based economy depend critically on them.

In the meantime, civil society will likely continue pressing for accountability, especially in light of RTI-documented abuses.

Even as relief plans are underway, many warn that rebuilding will not just require bricks and mortar – but a renewed social contract that can lay the foundations for more inclusive and resilient growth.

The Aswesuma scheme, introduced in 2023, aims to replace a decades-old programme with a new model that ostensibly uses multidimensional deprivation scores rather than just income thresholds.

A core feature of the initiative includes $40 million in World Bank Group guarantees in the first phase. This will help reduce risks for private investors and energy producers.

Tourism, one of Sri Lanka’s key economic drivers, is set to receive $200 million. These funds will be used to protect and enhance natural and cultural heritage sites, create employment opportunities, and ensure local communities benefit directly from tourism revenues.