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World Bank supports crisis-hit Sri Lanka’s efforts to reduce interest rate risk on its loans

World Bank supports crisis-hit Sri Lanka’s efforts to reduce interest rate risk on its loans

Interest rate risk can increase the cost of public debt, put pressure on country’s budget, and make it harder to reach development objectives. During its unprecedented crisis, World Bank helped Sri Lanka to strengthen its capacity to understand and manage financial risks, protect part of its budget against interest rate volatility and potentially save $38 million on the cost of public debt.