Sri Lanka loan plan to be revamped fast: World Bank

Feb 28, 2011 (LBO) – Sri Lanka’s World Bank office will accelerate its current programs start working on a new loan plan that will involve larger projects in fewer sectors at more market based rates, an official said. Elements of the current program dates back from before the end of a 30-year war in 2009.

World Bank has several programs on post-conflict relief and rehabilitation.

Updated The World Bank announced in December 2010 that Sri Lanka is graduating into middle income status and will be eligible for more market based loans from its International Bank for Reconstruction and Development (IBRD).

Sri Lanka has been a recipient of concessional International Development Agency credits and grants until now. World Bank’s current loan program, called the country assistance strategy (CAS) was originally scheduled to end in 2012.

“Because the government is now eligible to IBRD funding and is moving into middle income country status we need to be able to accelerate the development of the CAS,” World Bank’s newly appointed country director Diarietou Gaye said.

Gaye said the current program would be accelerated and new strategy would be developed by the end of this year to the bank’s board