Norway relieves Sri Lanka’s debt burden with a million dollar grant to partially repay loans owed to the World Bank

Sri Lanka has tapped Norwegian government’s generosity for a US$ 1.13 mn grant to settle part of its debts owed to the World Bank. Sri Lanka has tapped Norwegian government’s generosity for a US$ 1.13 mn grant to settle part of its debts owed to the World Bank. The grant has been provided to a trust fund to be administered by The World Bank and will be utilised for debt-service payments due from Sri Lanka to the World Bank.

Peter Harrold, Country Director for the World Bank said the grant from Norway comes at a vital time as Sri Lanka sets the course for economic growth.

One of the key constraints Sri Lanka is facing is the burden of its debt payments on its ability to finance public expenditure. This generous grant from Norway takes care of one aspect of that for Sri Lanka, creating some Rs. 120 mn in additional revenue for the budget, Harrold said in a statement on Friday.

“We are very pleased to be able to make this grant to Sri Lanka, said Norwegian Ambassador,” Hans Brattsklar.

It reflects the broad commitment that Norway has in Sri Lanka, not only for the peace process, but for poverty reduction and econom