Sri Lanka receives US$ 25 million loan from World Bank to improve public financial management
The World Bank has announced its approval for a US$ 25 million loan to Sri Lanka aimed at improving the transparency and efficiency of core government and public financial management functions.
According to the World Bank, the Public Sector Efficiency Strengthening Project (PSEP) will help strengthen the institutional capacity of the Ministry of Finance in Sri Lanka to improve efficiency and deliver better services, with better use of IT and human talent.
“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” World Bank Country Director for Nepal, Sri Lanka and Maldives Idah Pswarayi-Riddihough has said in a statement issued by the Bank.
“The use of smart technology-based systems such as e-procurement will enhance efficiency, improve transparency and accountability of public institutions through the simplification of procedures,” she has noted.
The US$ 25 million loan from the International Bank for Reconstruction and Development (IBRD) has a final maturity of 28 years including 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 project will also leverage international experience in public financial management to increase the impacts of the outcome,” World Bank Senior Financial Management Specialist and Task Team Leader for the project Mohan Gopalakrishnan has been quoted as saying.
The Sri Lankan government is currently providing a fiscal stimulus package which many analysts worry is not sustainable.
Sri Lanka’s President Gotabhaya Rajapaksa has pledged to bridge the gap in finances by strengthening the public sector and eradicating corruption.
OSL take:
Sri Lankan authorities are engaged in developing overall productivity in the country. The funds made available by the World Bank for the development of the country’s public sector is an encouraging sign as it will further boost Sri Lanka’s ease of doing business environment. Sri Lanka continues to grow in the ease of doing business environment index. Foreign businesses could confidently explore business opportunities in Sri Lanka.
| Article Code : | VBS/AT/23122019/Z_2 |