SL anticipates $500 mn support from ADB in 2024, says Country Director

February 25, Colombo (LNW): Takafumi Kadono, Country Director of the Asian Development Bank (ADB), has indicated that Sri Lanka may receive $500 million in assistance from the ADB in 2024, contingent upon the progress of policy reforms.

The ADB is poised to present a $100 million power sector loan proposal to its Board around March or April, pending approval of a revised electricity reform bill by the Cabinet of Ministers.

Another $100 million loan to bolster Small and Medium Enterprises (SMEs) could be greenlit early in the year as Sri Lanka establishes a credit guarantee agency to facilitate credit for small businesses.

Additionally, a $200 million credit line is earmarked for the financial sector, with the ADB having disbursed the initial installment of this financial sector policy loan in the latter part of last year.

Further funding, amounting to $100 million, is under consideration for the water sector, with potential approval later in the year.

Sri Lanka may access $200 to $300 million annually at a concessional rate of 2 per cent under the ADB’s concessional ordinary capital resources (COL) framework, with the remaining balance linked to the SOFR-based ordinary capital resource rate.

Moreover, the ADB has commenced crafting a ‘Country Partnership Strategy’ for Sri Lanka spanning the period of 2024 to 2028, Kadono disclosed.

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Source:: LNW English