Cabinet approval for US$ 400 Mn loan agreement with ADB

September 26, 2023 at 12:48 PM

The Cabinet of Ministers has approved a proposal to enter into an agreement with the Asian Development Bank (ADB) to obtain the first tranche of US$ 200 million of a US$ 400 million loan facility under the Economic Stabilization and Reformation Programme. 

According to the government, initial discussions with the ADB were held by the Sri Lankan Government to obtain 02 loan facilities worth US dollars 200 million each based on policies to implement 02 sub – programmes under the economic stabilization and reformation programme. 

It has been proposed to implement accelerated reformations to enhance the conflict management framework and the stabilization in the finance sector under the first sub – programme.

Meanwhile, it has been proposed to develop an all – inclusive resistant finance system under the second sub – programme. 

The Cabinet has granted approval to the proposal submitted by President Ranil Wickremesinghe in his capacity as the Minister of Finance, to enter into a loan agreement with the Asian Development Bank in this regard.

It has been proposed to obtain an amount of US dollars 200 million subject to an annual interest rate of 2% with a repaying period of 25 years inclusive of a grace period of 05 years in relation to the first sub – programme. (NewsWire)