The World Bank has proposed to downgrade Sri Lanka from a ‘middle-income’ country to a ‘low-income’ country, a proposal previously made by India, confirmed State Minister of Finance Ranjith Siyambalapitiya.
In the midst of Sri Lanka’s worst economic crisis, the repayment of foreign debt has also been suspended and requests submitted to the creditors for debt restructuring have not been responded with positive feedback.
WB envoys told the Sri Lankan authorities that being categorised as a low-income country would be an added advantage to receive aid and low-interest loans to overcome the crisis, and the Government of Sri Lanka (GOSL) is currently considering the option, correspondents said.
Despite the island nation being labelled as a ‘low-income’ country being economically advantageous given the crisis, its long-term impact should also be paid attention to, the GOSL viewed.
MIAP
