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Sri Lanka to be downgraded from middle-income to low-income country
11 Oct, 2022
Sri Lanka is to be downgraded from a middle-income to low-income country, the Government said today.
The President’s Office said that the move will be temporary.
Cabinet spokesman Bandula Gunawardena said that the Cabinet of Ministers had granted approval for a proposal to downgrade Sri Lanka?s status from a middle-income country to a ?low-income country.
He said that the downgrading will eventually be carried out by international rating agencies.
The move comes after Sri Lanka suffered its worst economic crisis in history.
The downgrading will help Sri Lanka have more access to international financial assistance.
“Sri Lanka will remain a middle-income country. Sri Lanka no longer qualifies for International Bank for Reconstruction and Development (IBRD) loans due to a credit rating downgrade. We will request the WB to grant us eligibility to obtain International Development Association loans,” the President’s Office said.
Dinouk Colombage, Director of International Affairs for President Ranil Wickremesinghe said that twelve countries including Indonesia had availed themselves of the “Gap” facility when they were facing an economic downturn similar to Sri Lanka.
He said the Government is pursuing a “reverse graduation” policy for a limited period of time.?(Colombo Gazette)
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