More aid from World Bank for Sri Lanka as a middle-income country

World Bank Managing Director, Dr. Ngozi Okonjo-Iweala who arrived in Sri Lanka today for a two-day visit said the country under its middle-income status is eligible to receive more World Bank aid for its development.

Dr. Ngozi Okonjo-Iweala announcing the moves which could pave the way for Sri Lanka to receive increased support from the development institution has reaffirmed the World Bank's strong and expanding support to Sri Lanka as it transitions towards a middle-income country in lasting peace.

Dr. Okonjo-Iweala gave these assurances when she met Sri Lanka President Mahinda Rajapaksa today at the Temple Tress.

In recognition of the country's emergence as a growing economy, Dr. Okonjo-Iweala 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 International Development Agency (IDA).

This development has the potential to more than double the amount of resources available to Sri Lanka every year, currently close to $200 million annually from IDA, a World Bank press release said.

The World Bank official attributed Sri Lanka's remarkable rise from past challenges to the tenacity of the Sri Lankan people and the commitment of the country's leadership.

"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," said Dr. Okonjo-Iweala.


During the meeting with President Rajapaksa, Dr. Okonjo-Iweala has reiterated her institution's commitment to Sri Lanka, especially in supporting programs designed to encourage inclusive growth throughout the country.


She has 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 Chinthana, the Government's vision for future development.
President Rajapaksa has 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 Chinthana.
The World Bank official also met the Central Bank Governor Ajith Nivard Cabraal and along other senior officials and spoke at the Central Bank's 60th anniversary commemorations.
In her speech to the Central Bank, the Harvard-educated former finance minister of Nigeria has 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.
Dr. Okonjo-Iweala has stressed that in order to foster the economic well-being of all Sri Lankans, the ultimate recipe for growth must be unique to the country and that it would be expected to share its accumulated expertise with others in South Asia.
"The World Bank can play complementary role in facilitating this process by sharing not only our own knowledge, but also the expertise of other emerging economies through South-South exchanges," she has said.
Dr. Okonjo-Iweala will be visiting World Bank supported projects in Eastern Sri Lanka tomorrow aimed at increasing opportunities and improving livelihoods. Her stops will include projects assisting with higher education, employment generation for vulnerable groups, small and micro enterprise development and increasing computer use and literacy, the press release said.
According to the global financial institution, since its first development credit to Sri Lanka for the Aberdeen - Laksapana Power Project in 1954, the World Bank has become one of Sri Lanka's largest development partners. It has worked closely to support the country's progress in infrastructure, education, health, and environmental protection. It is currently supporting the implementation of 17 projects totaling $1.25 billion in assistance aimed at maximizing impact and results.
Minister Rathnasiri Wickramanayaka, Deputy Minister Githanjana Gunawardena and Secretary to the President Lalith Weerathunge also participated in the discussion with Dr. Okonjo-Iweala.
(Photos by Chandana Perera)