About $500 million of the funds will be allocated for budgetary support while the remaining $200 million will be for welfare support earmarked for those worst hit by the crisis.
"Through a phased approach, the World Bank Group strategy focuses on early economic stabilization, structural reforms, and protection of the poor and vulnerable," the World Bank's country director for Sri Lanka, Faris Hadad-Zervos, said in a statement.
"If sustained, these reforms can put the country back on the path towards a green, resilient and inclusive development," Zervos said.
Sri Lanka is struggling with the worst financial crisis since its independence from Britain in 1948 after the country's foreign exchange hit record lows and triggered its first foreign debt default last year.
The island nation will release a domestic debt restructuring program this week to push forward reworking its debt with bondholders and bilateral creditors including China, Japan and India.
