Sri Lanka’s portfolio one of the best - MD, World Bank

By Surekha GALAGODA

The World Bank (WB) will further increase its financial support to Sri Lanka, said the Managing Director of the World Bank (WB) Dr. Ngozi Okonjo Iweala. Concluding her two-day visit to Sri Lanka she said that at present the WB gives $ 150-200 mln as IDA funding which is soft funding. The WB is also opening up the IBRD arm of funding for the country.

Dr. Ngozi Okonjo Iweala

The Sri Lankan government needs $ 500 mln and the IDA funding together with the IBRD funding will total this amount.

Dr. Iweala said that near term prospects for Sri Lanka are good with the economy growing at seven percent while the budget proposals are credible as it plans to reduce the fiscal deficit. She said that Sri Lanka should be congratulated on the progress made on the economic front while it has the attributes to move forward to become a middle income country.

Dr Iweala said that the Mahinda Chinthana is a good vision statement as it talks of inclusive growth. In addition the ground work is being done to make the country a knowledge hub as well as a logistics hub. This will create more employment opportunities and tackle poverty.

She said that it is very useful for Sri Lanka to have IDA and IBRD funding for the next three years. Credit worthiness is good as it helps countries to tap several financial resources which can be blended to have a good package of financing.

Dr. Iweala said the country needs funds for its infrastructure projects as well as to make the people skilled. The Sri Lankan portfolio is one of the best performing portfolios and disbursements have been fairly good while the money is well used.

The WB sees that all ingredients are being put in place to ensure that lasting peace is maintained through inclusive growth. In addition Sri Lanka has all what it takes to be the wonder of Asia through inclusive growth acceleration, said Dr Iweala.