Financial Sector Safety Net Strengthening Project

active

The proposed operation is in response to the request from GoSL and CBSL for financing to increase SLDIS’s capitalization and strengthen its institutional capacity. The project is expected to lead to improvements in the financial and institutional capacity of SLDIS in the direction of greater compliance with IADI CPs, with the results expected in two areas: (i) ensuring adequate financial inflows into the SLDIS during the course of the project, in order to achieve the adequate funding ratio; and (ii) improving the institutional capacity of the SLDIS to perform its legally mandated functions (deposit payout and contributing to resolution), as evidenced, inter alia, by the reduction in time required for reimbursement. The first component will finance the quick build-up of SLDIS reserves linked to the progress in institutional reform. The second component will financial technical assistance (TA) activities, given the large capacity building agenda as demonstrated by the recent IADI assessment. The third component aims to provide support to the CBSL for effective project implementation.