The Cabinet has granted approval to the proposal to downgrade Sri Lanka’s status from Middle Income Country to a Low Income Country.
The move has been made to facilitate future loans and concessions following the information provided by world organizations.
Sri Lanka hopes to gain loans and concessionary funding from the International Development Association (IDA), which is the World Bank (WB) that helps the poorest and vulnerable nations.
In 2020, Sri Lanka was downgraded as a Developing/Emerging lower-middle-income economy just a year after (2019) it was elevated to the upper middle-income category.
Since 2020 to date, Sri Lanka remained a Developing/Emerging lower-middle-income economy and has now been demoted to a Low Income Country. (NewsWire)