Cabinet nod has been given to demote Sri Lanka to a lower income status, a step that is taken with the aim of having more access to financial assistance, loans and concessions.
The proposal was made so that the crisis-stricken country can gain concessionary funding from the International Development Association (IDA), which is the World Bank (WB) that helps the poorest and vulnerable nations.
Sri Lanka is currently categorised as a Developing/Emerging lower-middle income economy. In 2020 the island nation was downgraded to its current status just a year after (2019) it was elevated to the upper middle-income category.
Sri Lanka’s GNI as of 2021 as calculated by the World Bank is US$ 3,820.