From conflict to peace:

World Bank MD hails transition

Surpassing the US$ 2,000 per capita income, Sri Lanka is no longer an underdeveloped country and as a result, not qualified for International Development Association (IDA) loans that provide interest free financial assistance to underdeveloped countries, World Bank Group Managing Director Dr Ngozi Okonjo-Iweala said.

She made this statement when she called on President Mahinda Rajapaksa at Temple Trees yesterday.

Instead, the World Bank would consider providing a commercial loan of US$ 265 million from International Bank for Reconstruction and Development (IBRD), she said.

IBRD, an arm of the World Bank, aims to reduce poverty in middle-income and creditworthy countries by promoting sustainable development through loans, guarantees, risk management products and analytical 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,” Dr Okonjo-Iweala said.

The post-conflict environment provides an opportunity to build on our relationship to support the government’s vision to firmly establish the country’s place in the ranks of fast growing middle income countries, she said.

In addition to funding, Dr Okonjo-Iweala said the World Bank was willing to share knowledge and expertise with Sri Lanka regarding urban development. Foreign Direct Investment was vital for any middle income country to achieve its economic targets, she added.

She also emphasized the importance of seeking alternative energy sources as the world was on the brink of an energy crisis.

“Dr Ngozi 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 recent statement. Dr Okonjo-Iweala, a national of Nigeria, was formerly the Foreign Affairs Minister as well as the first female Finance and Economy Minister for Nigeria.