Government signs loan agreement with ADB & Japan Fund for food security project

September 9, 2022 at 3:30 PM

An Agreement for the Food Security and Livelihood Recovery Emergency Assistance Project amounting to USD 200 million and the Grant Agreement amounting to USD 3 million was signed today. 

The President’s Media Division (PMD) said the Government of Sri Lanka is planning to borrow USD 200 million from the Asian Development Bank (ADB) to finance the implementation of Food Security and Livelihood Recovery Emergency Assistance Project which is expected to ensure access to food and protect livelihoods of the poor and vulnerable, especially women and children.

The loan of USD 200 million will be provided by ADB’s Ordinary Capital Resources. 

In addition, Japan Fund for Prosperous and Resilient Asia and the Pacific (JFPR) will provide a grant of USD 03 million through ADB to finance the project activities. 

The PMD said that the total project cost is estimated as USD 203.36 million, out of which USD 0.36 million has been agreed to be borne by the Government.

The project will also upgrade information technology systems and digital tools for the Samurdhi program and agriculture and agrarian development to enhance cash grant beneficiary selection, verification, monitoring, and communication, and improve financial, advisory, and other services for low-income families and farmers. 

The PMD further said that the project is scheduled to be completed by 29th February 2024.

The relevant loan agreement was signed by K M Mahinda Siriwardana, Secretary, Ministry of Finance, Economic Stabilization and National Policies, and Chen Chen, Country Director, ADB Resident Mission, today on behalf of the Government of Sri Lanka and ADB respectively. (NewsWire)