Sri Lanka’s cabinet has reportedly approved a proposal to downgrade its economic status to "low income country" whilst the president's office claimed Sri Lanka will remain a middle-income country, as the government continues to tackle a deep economic crisis.
Sri Lanka’s cabinet spokesman initially said on Tuesday that the move to downgrade the island to "low income" on the World Bank list, would ensure that “access to funding would be easier”.
However just hours later, President Ranil Wickremesinghe's office said the status change would not happen.
"Sri Lanka will remain a middle-income country," the office said in a statement. "We will request the World Bank to grant the country eligibility to obtain loans offered by the International Development Association (IDA)."