Sri Lanka initiates talks with ADB for $ 400 m loans to fuel economic reforms

Wednesday, 27 September 2023 00:30 - - {{hitsCtrl.values.hits}}

Cabinet nod to enter into loan agreement with ADB

The Cabinet of Ministers approved the proposal in this regard presented by President Ranil Wickremesinghe in his capacity as the Finance, Economic Stabilisation and National Policies Minister on Monday.

These loans are intended to support the implementation of two vital sub-programs and under the first sub-program; a focused effort is underway to expedite comprehensive reforms aimed at fortifying the conflict management framework and stabilising the finance sector. The second sub-program is to establish a robust and all-encompassing resilient finance system.

The approved plan allows Sri Lanka to enter into a loan agreement with the ADB paving the way for getting of $ 200 million subject to an annual interest rate of 2% with a repaying period of 25 years inclusive of a grace period of five years in relation to the first sub-program.

The targeted reforms are poised to invigorate the conflict management framework and strengthen the resilience of the finance sector, nurturing an environment conducive to sustained growth and development in the years ahead.