Sri Lanka to receive enhanced World Bank support

The Island
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World Bank's Managing Director, Dr. Ngozi Okonjo-lweala has announced moves for Sri Lanka to receive increased support from the world development funding institution. Speaking at the Central Bank of Sri Lanka's 60th anniversary celebrations on Friday, Dr. Okonjo-lweala reaffirmed the World Bank's strong and expanding support to Sri Lanka as it transitions towards a middle-income country in lasting peace. The announcement came after she met with President Mahinda Rajapaksa, Central Bank Governor Nivard Cabraal and senior Central Bank officials at the event.

In recognition of the country's emergence as a growing economy she announced Sri Lanka 's new eligibility for financing from the IBRD, the World Bank's lending arm for middle-income countries in addition to the current assistance from the IDA. This development has the potential to more than double the amount of resources available to Sri Lanka from the World Bank each year, to close to half a billion dollars - $200 million from IDA, which it continues to access, and now up to an additional $265 million available from IBRD.

"Sri Lanka's remarkable rise from past challenges is a testament to the tenacity of the Sri Lankan people and the commitment of the country's leadership," said Dr. Okonjo-Iweala. "Eligibility for IBRD borrowing is an important recognition of Sri Lanka's middle income country status and signals an important step in the evolution of our relationship going forward - a relationship that is founded on knowledge and experience-sharing that complements the available financing."

Conveying the news on IBRD financing to President Rajapaksa, she reiterated the World Bank's commitment to Sri Lanka, especially in supporting programs designed to encourage inclusive growth throughout the country. She also noted the World Bank's willingness to increase support to complement the ambitious development aspirations of doubling per capita income and growth in excess of 8%, which will be aided by increasing private investment from both foreign and domestic sources as envisioned in the Mahinda Chintana, the Government's vision for future development.

President Rajapaksa conveyed his appreciation to the World Bank for providing support to complement the country's development goals and noted that he looks forward to working with the Bank on the implementation of the Mahinda Chintana.

In her speech to the Central Bank, Dr. Okonjo-Iweala also emphasized the importance of investment and innovation towards development and exchanged ideas from global perspectives that could help Sri Lanka reach its full potential as a growing middle income country. "The expansion of the knowledge economy and the search for innovative ideas by all Sri Lankans will be important to successfully accelerate growth and improve living standards," she said.

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