Global General

Sri Lanka removed from underdeveloped list

(Xinhua)
Updated: 2010-12-17 20:40

COLOMBO -- Sri Lanka is no longer an underdeveloped country after surpassing US$2,000 per capita income, a World Bank official said here on Friday.

Ngozi Okonjo-Iweala, Managing Director of the World Bank, said Sri Lanka is no longer qualified for International Development Association loans that provide interest free financial assistance to the underdeveloped countries.

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She said that the World Bank instead would consider providing a commercial loan of 265 million U.S. dollars from International Bank for Reconstruction and Development, an arm of the World Bank aiming to reduce poverty in middle-income and creditworthy countries by promoting sustainable development through loans, guarantees, risk management products, and advisory services.

"The World Bank has been an active partner in supporting Sri Lanka in its transition from a low income country in conflict to a middle income country in peace," said Okonjo-Iweala when meeting with Sri Lankan President Mahinda Rajapaksa.

The post-conflict environment provided an opportunity for the World Bank to support the Sri Lankan government's vision to firmly establish its place in the ranks of fast growing middle income countries, she said.

In addition to funding, Okonjo-Iweala said the international financial institution is also willing to share knowledge and expertise with Sri Lanka regarding urban development.

She said foreign direct investment is vital for any middle income country to achieve its economic targets and emphasized the importance of seeking alternative energy sources as the world is on the brink of an energy crisis.

Okonjo-Iweala's trip coincides with a new era of development in Sri Lanka as it embarks on an ambitious new course towards a middle income country in lasting peace, the World Bank said in a statement.