WORLD BANK TO SUPPORT SRI LANKA IF DEFICITS CUT
The World Bank will support Sri Lanka's
development program provided the country reduces its budget and
current account deficits, the Ministry of Finance said.
    It said Bank President Barber Conable at a meeting with Sri
Lanka's Finance Minister Ronnie de Mel in Washington also
emphasised the need for structural adjustment and reform to the
economy, battered by five years of separatist disturbances.
    Officials said Sri Lanka's budget deficit this year is
expected to surpass the projected 28.7 billion rupees while
defence spending, already up by two billion rupees from a
targetted 10 billion, is also likely grow.
    The Ministry said de Mel asked the World Bank to give Sri
Lanka 6.5 billion rupees balance of payments support.
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