By: Staff Writer
Colombo (LNW): The Asian Development Bank (ADB) will provide US$ 200 million to implement 02 sub-programmes under the economic stabilization and reformation programme.
The Cabinet of Ministers has granted approval to enter into a loan agreement with the Asian Development Bank (ADB) to obtain $ 200 million, subject to an annual interest rate of 2% with a repaying period of 25 years inclusive of a grace period of 05 years.
Sri Lanka is a founding member of ADB. To date, ADB has committed 482 public sector loans, grants, and technical assistance totaling $11.2 billion to Sri Lanka. Cumulative loan and grant disbursements to Sri Lanka amount to $9.42 billion.
Initial discussions with the ADB have been held by the Sri Lankan Government to obtain 02 loan facilities worth USD 200 million each based on policies to implement 02 sub-programmes under the economic stabilization and reformation programme.
Furthermore, it has been proposed to implement accelerated reformations to enhance the conflict management framework and the stabilization in the finance sector under the first sub-programme while it has been proposed to develop an all-inclusive resistant finance system under the second sub-programme.
Accordingly, Cabinet approval has been granted for the proposal submitted by President Ranil Wickremesinghe in his office as the Minister of Finance, Economic Stabilization and National Policies to enter into the relevant loan agreement with the ADB.
The Asian Development Bank (ADB) has approved the eligibility of Sri Lanka to access concessional financing. The availability of concessional assistance, offered at low interest rates.
It is aimed at broadening Sri Lanka’s options to bridge its urgent development financing needs to restore economic stability and deliver essential services, particularly to the poor and vulnerable.
Eligibility for concessional resources among the developing member countries of ADB is based on gross national income per capita and creditworthiness.
ADB’s decision was considered based on a request from the Government of Sri Lanka in view of the severe and unprecedented economic crisis that has reversed hard-won development gains.
Sri Lanka is now eligible for ADB support including concessional and market-based financing, technical assistance, policy advice, and knowledge solutions that together comprise a comprehensive suite of options to address the crisis.
Access to concessional financing will also ease debt servicing pressures through more favorable lending terms.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.