World Bank assures to support Sri Lanka’s recovery, sustainable growth

Saturday, 15 October 2022 00:12 - - {{hitsCtrl.values.hits}}

World Bank Vice President South Asia Martin Raiser (left) meeting with State Finance Minister Shehan Semasinghe

The World Bank has assured it will work closely with the International Monetary Fund and other development partners, to support Sri Lanka’s recovery and sustainable growth.

The assurance was given by World Bank Vice President South Asia Martin Raiser during a brief meeting with State Finance Minister Shehan Semasinghe on the sidelines of the IMF and the World Bank annual meetings taking place in Washington, D.C.

A statement issued by the Finance Ministry noted that State Minister Semasinghe had an insightful conversation on options available to recover Sri Lanka’s economy with World Bank Vice President for the South Asia Region Raiser and World Bank delegation.

The State Minister also added the new concessional funding requested by Sri Lanka would remain linked to reforms, the progress of debt restructuring, and the program agreed with the IMF.

The discussions also focused on the current creditworthiness of Sri Lanka, which is no longer entitled to source funding through the World Bank’s International Bank for Reconstruction and Development (IBRD).

The process will entail a ‘reverse graduation’ to International Development Association (IDA), which will move Sri Lanka from an IBRD-only country to an IDA country. However Sri Lanka will remain listed as a middle-income country, the statement added.

As per the World Bank Vice President South Asia, sustained improvements in economic and social conditions by the Government could pave the way for Sri Lanka to graduate from IDA in the future.

State Minister Semasinghe is heading the Sri Lankan delegation attending IMF and World Bank annual meetings in Washington, D.C.