World Bank approves $25 million loan to Sri Lanka

The World Bank has approved a $25 million loan to Sri Lanka to improve the transparency and efficiency of core government and public financial management functions.

The World Bank said the Public Sector Efficiency Strengthening Project will help strengthen the institutional capacity of the Ministry of Finance to improve efficiency and deliver better services.

A World Bank statement noted the use of information technology and greater human resource capabilities will be the key drivers of this 5-year project.

The European Union will be a partner in PSEP with a technical assistance grant of Euro 10 million to help strengthen core public finance and accountability institutions.

World Bank Country Director for Sri Lanka Idah Z. Pswarayi-Riddihough said the 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.

She said 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.

The $25 million loan from the International Bank for Reconstruction and Development has a final maturity of 28 years including a grace period of 11 years.

(Source: News Radio)