Govt. to obtain $ 200 m ADB loan for financial sector stability

Thursday, 12 September 2024 02:47 - - {{hitsCtrl.values.hits}}

The Cabinet of Ministers on Monday approved obtaining a $ 200 million loan from the Asian Development Bank (ADB) under the second sub-program of Sri Lanka’s financial sector stability and reform initiative.

The move comes as part of a broader effort to stabilise the country’s financial sector and implement reforms critical to long-term economic recovery.

The loan is part of a $ 400 million package, initially approved by the Cabinet on 25 September 2023. The financial support is split into two sub-programmes aimed at enhancing financial sector stability.

The first $ 200 million was disbursed in December 2023, while the remaining amount is now set to be received upon the completion of key policy actions.

“To secure the second tranche of the loan, 12 pre-policy activities were mandated, most of which have either been completed or are nearing completion, according to Government sources,” Cabinet Spokesman and Minister Bandula Gunawardena said at the weekly post-Cabinet meeting media briefing yesterday.

The proposal to secure the remaining funds was presented by President Ranil Wickremesinghe, who also serves as the Minister of Finance, Economic Stabilisation and National Policies was approved by the Cabinet of Ministers.