Abb Takk News

World Bank Refuses New Funding for Bankrupt Sri Lanka

COLOMBO: The World Bank said Friday it would not offer new funding to Sri Lanka unless the bankrupt island nation carried out “deep structural reforms” to stabilise its crashing economy.

Sri Lanka has suffered an unprecedented downturn with its 22 million people enduring months of food and fuel shortages, rolling blackouts and rampant inflation.

The South Asian nation defaulted on its $51 billion foreign debt in April and huge protests earlier this month forced then president Gotabaya Rajapaksa to flee the country and resign.

The World Bank said it was concerned about the impact of the crisis on Sri Lanka’s people but was not ready to give funds until the government had bedded down necessary reforms.