The World Bank, the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB) have jointly decided to support Sri Lanka’s response to the ongoing economic crisis.
The three institutions announced their decision in a statement issued after the first joint coordinated meeting held on the 19th of May.
The Sri Lanka Government is mobilizing is Asian Development Bank (ADB) of around US$1300 million consisting of around US$ 780 million in the form of loans obtained as Official Development Assistance (ODA).
Asum of USD 70.9 million is raised by way of ODA grants and technical assistance annually By entering into around 38-40 agreements with donor countries and international agencies, finance ministry data shows.
Aisdian Development leads the Official Development Assistance (ODA commitments amounting to US$ 568.0 million, followed by the World Bank (US$ 217.8 million) and Asian Infrastructure Investment Bank (AIIB) a considerable amount.
“All three institutions are adopting a coordinated approach to sustain basic services and livelihoods and to mitigate the impact of the economic crisis on the people of Sri Lanka.”
This includes access to essential items such as medicines, cash assistance, gas and fertilizer through the reallocation of resources from existing projects, the statement read further.
The Government is making arrangements to mobilize foreign financing of around US$ 1,300 million or more on avarege by entering into with foreign development partners and lending international donor agencies annully to support the public investment program.
This consists of around US$ 780 million in the form of loans obtained as Official Development Assistance (ODA) and USD 70.9 million was raised by way of ODA grants and technical assistance.
In addition to the funds raised from ODA development partners, around US 500 million was $ raised through term loan facilities extended by the China Development Bank during the period under review.
This was raised at a variable interest rate of London Interbank Offer Rate (LIBOR) at 6-month USD and 2.51 percent margin with a 10-year tenure.
Asian Development Bank (ADB) leads the ODA commitments during this period amounting to USD 568.0 million, followed by the World Bank (USD 217.8 million), European Union (USD 43.6 million), Germany (USD 12.5 million), Japan (USD 9.5 million), UN Agencies (USD 0.7 million). Commitments arranged to education and training was the highest among all the sectors which accounted for USD 400 million or 31 percent of the total followed by SME development (USD 165 million) and Disaster management (USD 129 million).
The Finance Ministry plans to obtain the approval of these countries and international financial agencies use part of their balance amount for the importation of fuel LP gas and other essential food commodities to overcome the present economic crisis as it has suspended development projects.