Sri Lanka no more underdeveloped country: World Bank

Ngozi Okonjo-Iweala, managing director of World Bank, said Sri Lanka was no longer qualified for International Development Association loans that provide interest free financial assistance to underdeveloped countries, Xinhua reported.

She said the World Bank would instead consider providing a commercial loan of $265 million from the International Bank for Reconstruction and Development, an arm of the World Bank.

"The World Bank has been an active partner in supporting Sri Lanka in its transition from a low income country in conflict to a middle income country in peace," Okonjo-Iweala told President Mahinda Rajapaksa.

The post-conflict environment provided an opportunity for the World Bank to support the Sri Lankan government's vision to firmly establish its place in the ranks of fast growing middle income countries, she said.

In addition to funding, Okonjo-Iweala said the international financial institution was also willing to share knowledge and expertise with Sri Lanka regarding urban development.