USD 150 Million Financial Assistance from the International Development Association of the World Bank for the Financial Sector Safety Net Strengthening Project.
The Government of Sri Lanka has made arrangements to borrow USD 150 million from the International Development Association (IDA) of the World Bank Group to finance the implementation of Financial Sector Safety Net Strengthening Project.
The Financial Sector Safety Net Strengthening Project will contribute to strengthen Sri Lanka’s financial sector safety net with the focus on the Sri Lanka Deposit Insurance Scheme (SLDIS), which is managed by the CBSL. The project also aims at strengthening the financial and institutional capacity of SLDIS in line with international best practices for effective deposit insurance schemes. Further, it will also support to boost the reserves of SLDIS in order to enable it to meet its payout and bank resolution obligations, and to safeguard the confidence of the public in the financial system and to improve the capacity of the SLDIS to perform its legally mandated functions by the reduction in time required for reimbursement and by an increase in public awareness about the scheme.
The project will be implemented by the CBSL in consistent with the project development objectives and project design.
The relevant Financing Agreement for the Financial Sector Safety Net Strengthening Project, amounting to USD 150 million was signed by Mr. K.M. Mahinda Siriwardana, Secretary to the Treasury, and Mr. Faris H. Hadad-Zervos, Country Director for Maldives, Nepal and Sri Lanka, on January 31, 2024 on behalf of the Government of Sri Lanka and IDA, respectively.