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The World Bank Group said it has approved $700 million in financing for two operations to help Sri Lanka implement foundational reforms as the island nation is trying to overcome its worst-ever economic crisis.

The World Bank Group's Board of Executive Directors discussed the new Country Partnership Framework (CPF) for Sri Lanka, which aims to help restore economic and financial sector stability and build a strong foundation for a green, resilient, and inclusive recovery, reports Xinhua news agency quoting an official statement issued by the global lender.

The CPF, which covers the years from 2024 to 2027, lays out a two-phased approach that starts with a focus on urgent macro-fiscal and structural reforms and supports protecting the human capital and the most vulnerable population.

The statement said it comes at a time when the country is navigating its worst-ever economic crisis that has had devastating impacts on people's lives and demands deep reforms to stabilise the economy and protect the poor and vulnerable.

Sri Lanka's poverty rate is estimated to have doubled from 13.1 to 25 per cent between 2021 and 2022, an addition of 2.5 million poor people, and is projected to increase by another 2.4 percentage points in 2023, according to the statement.

"The extent of the crisis in Sri Lanka is unprecedented, but offers a historic opportunity for deep reforms to reset the country's economic storyline," said Faris H. Hadad-Zervos, World Bank country director for Sri Lanka.