World Bank to provide financial assistance to Sri Lanka to the tune of US$ 465 million next year

The World Bank has said that Sri Lanka as a middle-income country is eligible to receive increased financial assistance from the lending institution.

The Managing Director of World Bank Dr. Ngozi Okonjo-Iweala has said that Sri Lanka will be able to draw up to US$ 465 million next year as the country under the improved status was now eligible for commercial loans through the International Bank for Reconstruction and Development (IBRD).

The Bank has said its assistance could complement the bilateral loans being negotiated by the country with countries like India and China.

Dr. Okonjo-Iweala, who visited Sri Lanka on a two-day visit met with President Mahinda Rajapaksa last week and pledged increased support for the country.

At the end of her visit, Dr. Okonjo-Iweala told the media that Sri Lanka sought US$ 500 million in financial assistance in 2011 for its post-war economic recovery.

In addition to the assistance from the IBRD, Sri Lanka will be entitled to draw from the Bank's concessionary arm, the International Development Association (IDA), for about three more years, the World Bank official said.

According to Okonjo-Iweala, since Sri Lanka will be able to have a combination of IDA and IBRD loans, Bank's credit to the country could increase to US$ 465 million from US$ 200 million next year.