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Protecting the vulnerable is critical in overcoming crisis – World Bank
COLOMBO (News 1st) – The World Bank on Thursday (6) announced that debt restructuring and the implementation of a deep reform program are critical for Sri Lanka’s economic stabilization.Sri Lanka’s real GDP is expected to fall by 9.2 percent this year and a further 4.2 percent in 2023, said the World Bank in its twice-a-year update, underscoring the need for Sri Lanka to build resilience.Beset with Sri Lanka’s economic crisis, Pakistan’s catastrophic floods, a global slowdown, and impacts of the war in Ukraine, South Asia faces an unprecedented combination of shocks on top of the lingering scars of the COVID-19 pandemic, said the World Bank in a statement titled "Unprecedented Shocks Rattle South Asia, Exacerbating Challenges and Dampening Growth."“Protecting the vulnerable is critical as Sri Lanka fast tracks deep reforms to navigate the deepening economic crisis.The crisis calls for immediate action to protect the poorest and most in need while also focusing on strengthening the social protection system,” said Faris H. Hadad-Zervos, World Bank Country Director for Maldives, Nepal and Sri Lanka. “In the face of the economic crisis, poverty estimates doubled to 25.6 percent between 2021 and 2022, increasing the number of people living in poverty by 2.7 million.