Martin Raiser: Latest News

COLOMBO (News 1st) – State Minister of Finance Shehan Semasinghe met with the World Bank Vice President for the South Asia Region, Martin Raiser, and a World Bank delegation during the World Bank Annual Meetings 2022, to discuss options available to recover Sri Lanka's economy.The discussions were focused on the current creditworthiness of Sri Lanka, which is no longer entitled to source funding through the World Bank’s International Bank for Reconstruction and Development (IBRD), instead to work with the International Development Association (IDA) rating, which will grant Sri Lanka to obtain concessional loans. This process, which will entail a "reverse graduation" to IDA, will move Sri Lanka from an IBRD-only country to an IDA country.However, Sri Lanka will remain listed as a middle-income country.The IMF/WB also emphasized that access to this potential new concessional funding remains linked to deep reforms, an IMF program, and progress with a comprehensive debt treatment the process by the authorities of Sri Lanka. The VP and the WB Delegation said that sustained improvements in economic and social conditions by the Sri Lankan government could pave the way for Sri Lanka to graduate from IDA in the future.

Representatives from the World Bank stated that the World Bank will continue to support Sri Lanka’s development reforms program.They stated that the World Bank will provide technical assistance in the drafting of laws for development policy operations, as well as work to provide additional guidance and support regarding the use of international media and welfare benefits.The delegation including the Vice President of the South Asian Region of World Bank, Martin Raiser, met President Ranil Wickremesinghe at the Presidential Secretariat on Tuesday (28).The World Bank Development Policy Operational Program was fully investigated and the President and World Bank representatives commented on its progress.Improving financial supervision and credit management, improving tax administration, sovereign-financial sector linkages and reducing systemic risks; maintaining stability and confidence in the banking sector, restructuring and divestment, reducing policy uncertainty and increasing competitiveness in the economy, mobilizing private capital and competition in the broadband market, strengthening the social security institution, delivery system and targeting was discussed.Source: PMD