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Sri Lanka to get funding from higher cost window: World Bank

Dec 18, 2010 (LBO) - Sri Lanka has qualified to get loans from a higher cost window of the World Bank amid rising incomes, which will double access to annual funds, managing director Ngozi Okonjo-Iweala said. Sri Lanka also now has access to capital markets.
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Countries with access to capital markets and which are deemed creditworthy and also has higher per capita income will 'graduate' out of IDA financing and eventually move to IBRD loans.
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World Bank has started lending to Sri Lanka by financing a hydro power plant in 1954 and is now operating 17 projects worth 1.25 billion US dollars.

It has also increasing access to capital markets.

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Last year Sri Lanka raised a billion US dollars through a sovereign bond. The country has also been borrowing heavily from China through export credits, volumes of which are dwarfing traditional lenders like the World Bank and Japan.

Earlier this month Sri Lanka announced two new loans from two Chinese banks worth 760 million US dollars.

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Sri Lanka has been a so-called IDA (International Development Association) concessionary credit recipient at low interest rates, long tenors and grace periods and a high grant element.

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The country will now also ge

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