The World Bank's Board of Executive Directors has approved $150 million in financing for Sri Lanka to improve the quality and utilisation of its primary healthcare services, according to a statement.

The World Bank on Monday said the project would help improve the quality of care and increase the use of primary medical care institutions, which provide essential health services to local communities, reports Xinhua news agency.

Capacity challenges and the absence of a formal referral mechanism have led to the underutilisation of primary healthcare facilities and overcrowding in tertiary care facilities in Sri Lanka, according to the statement.

The previous World Bank-supported project already enhanced 550 Primary Medical Care Institutions with essential equipment, medicines, health workers and basic laboratory testing facilities.

The new project will scale up these efforts to cover 100 per cent of Primary Medical Care Institutions across all districts of Sri Lanka, expanding to over 1,000 facilities with a more comprehensive service package and improved quality of care, it said.