Sri Lanka is gradually emerging from a severe financial crisis, anticipating a significant boost from the Asian Development Bank (ADB) following the International Monetary Fund’s (IMF) approval of a $2.9 billion bailout package. A staggering $600 million is set to be disbursed to the crisis-hit nation, confirmed by an official on Tuesday.

Triggered by alarmingly low foreign exchange reserves last year, Sri Lanka witnessed a sharp economic contraction of 7.8% in 2022, marking one of its most challenging financial periods in decades.

With the economy showing signs of stabilization after entering a four-year program with the IMF in March, the imminent approval of the first review by the IMF is expected to unleash the release of approximately $334 million in funding, constituting the second tranche of the bailout.

Takafumi Kadono, the Country Director at ADB’s Sri Lanka Resident Mission, revealed plans for extensive support, outlining a projected total budget assistance of $2 billion over the upcoming four years.

Kadono emphasized, “I would say $500 million to $600 million budget support is what is planned (for 2024) but, again, it is subject to attainment, satisfying the policy actions, so it’s not free money.”

The proposed assistance is slated to primarily encompass policy-based loans and project lending, with an initial $200 million set for ADB Board approval on Dec. 8. However, disbursement to Sri Lanka will only follow the IMF’s scheduled approval on Dec. 12.

Future disbursements are earmarked for specific sectors: $200 million designated for power sector reforms in 2024, $100 million allocated to the water sector, and an estimated $50-$70 million intended for the tourism sector.

Furthermore, ADB aims to extend $100 million to enhance access to financing for small and medium-sized enterprises, alongside an additional $100 million directed towards improving public finance and debt management.

Highlighting the imperative need for continued commitment to reforms outlined in the IMF program, Kadono stressed the significance of restructuring loss-making state enterprises, curbing budget deficits, and enhancing governance.

“These are not band-aid measures. I think Sri Lanka has done a lot of that in the past so, I think it’s really time to fix the fundamentals of the economy and to address these latent weaknesses in the economy and the institutions,” Kadono stated emphatically.

The Central Bank of Sri Lanka (CBSL) and the Foreign Employment Bureau (SLBFE) have jointly launched the “Manusavi” Migrant Worker Loan Scheme, aimed at empowering migrant workers through licensed commercial banks starting from December 4.

The inauguration ceremony was graced by Labor and Foreign Employment Minister Manusha Nanayakkara. Notably, Hilmi Asis, Chairman of SLBFE, and Senarath Dharmawardena, the Regional Development Director representing CBSL, exchanged pivotal loan proposal agreements.

Under this initiative, SLBFE has allocated Rs. 5 billion to facilitate the loan scheme. To qualify, migrant workers must maintain a separate or joint Personal Foreign Currency Account (PFCA) or Savings Account (RSA) with a licensed commercial bank and demonstrate recent foreign exchange remittances into the account within the last three months.

The loan can be utilized for diverse purposes such as initiating or expanding businesses, acquiring or extending homes, purchasing land or vehicles, funding children’s higher education, or other productive ventures, with a maximum loan limit of Rs. 2 million.

Interest rates are capped at 8%, and borrowers are granted a maximum repayment period of 36 months. Applicants can submit individual or joint loan applications to the respective bank either before departure or while overseas. Additionally, individuals can authorize a close relative via a power of attorney (POA) to receive the loan amount on their behalf.

The loans must be repaid in foreign currency and can be settled in Sri Lankan Rupees (LKR) upon the worker’s return to Sri Lanka after completing their foreign employment, subject to prevailing market interest rates.

To bolster this initiative, refinancing facilities are extended through the CBSL’s Regional Development Department at an annual interest rate of 4% for several licensed commercial banks participating in this endeavor, including Bank of Ceylon, People’s Bank, Commercial Bank, Hatton National Bank (HNB), Sampath Bank, Seylan Bank, Cargills Bank, DFCC Bank, National Development Bank (NDB), Pan Asia Bank, and Union Bank.

The Severe Cyclonic Storm “MICHAUNG” (PRONOUNCED AS “MIGJAUM”) over West-Central Bay of Bengal has crossed the Andhra Pradesh coast of India and this system is gradually weakening.

Showers will occur at times in Western, Southern and North western provinces, particularly during the morning.

Showers or thundershowers will occur at several places in Sabaragamuwa, Central, Eastern and Uva provinces after 02.00 p.m.

Misty Condition can be expected in Sabaragamuwa, Central and Uva provinces during the morning.

The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.

Colombo (LNW): In accordance with the resolution outlined in the letter No. NPC/ED/ACT/SSP/01/09/2023 from the National Police Commission dated 01/12/2023 and as stipulated in Section 135 of the Public Service Commission Rules of Procedure on 23/11/2023, the Police personnel listed below have been designated to the position of Senior Superintendent of Police (SSP) for a term lasting until 22.11.2024 or until the appointment of a permanent officer to the vacant position, whichever occurs earlier.

Colombo (LNW): The budget proposal of the Elpitiya Pradeshiya Sabha, currently under the governance of the Sri Lanka Podujana Peramuna (SLPP), encountered a substantial defeat today (05), with a majority of 09 votes opposing it.

Chairman Karunasena Ponnamperuma presented the budget proposal to the council, with only 10 councilors from the SLPP casting affirmative votes.

Conversely, 19 councilors voted against the proposal, comprising 7 MPs from the SLPP itself, 7 MPs from the Samagi Jana Balawegaya (SJB), 3 MPs from the Sri Lanka Freedom Party (SLFP), and 2 MPs from the National Peoples’ Power (NPP).

Colombo (LNW): The Court of Appeal has rescheduled the hearing on the petition related to the appointment of the Sri Lanka Cricket (SLC) interim committee and the stay order inhibiting its functions. The court will address the case on Wednesday, December 13, 2023.

The postponement occurred as the new Sports Minister, Harin Fernando, requested additional time to communicate his stance regarding the Gazette issued on the interim committee.

Minister Fernando assured the court that no further action would be taken regarding the Gazette notification issued by the former Sports Minister until the specified date.

The case revolves around a motion filed by former Sports Minister Roshan Ranasinghe, seeking an order to revoke the stay order imposed on the recently appointed SLC Interim Committee. The stay order was initiated following a motion filed by SLC President Shammi Silva.

Former Sports Minister Roshan Ranasinghe appointed the interim committee, alleging financial malpractices in cricket administration, a claim refuted by the SLC.

The dispute between Ranasinghe and SLC gained parliamentary attention, resulting in the International Cricket Council (ICC) imposing a ban on Sri Lanka Cricket.

Consequently, President Ranil Wickremesinghe removed Roshan Ranasinghe from his ministerial portfolio and appointed Tourism and Lands Minister Harin Fernando to the post.

Colombo (LNW): November 2023 witnessed a surge in tourist arrivals, surpassing 150,000 and marking the highest for the year, according to Sri Lanka’s Tourism Ministry.

The month recorded a total of 151,496 tourist arrivals. India remained the leading source market, contributing 20 per cent , followed by Russia at 16 per cent and Germany at 8 per cent.

Other notable contributors included the United Kingdom, Australia, China, the United States, and France.

With these November arrivals, Sri Lanka’s total tourist count for the initial 11 months of the year reached 1.27 million.