The Cabinet of Ministers has approved a proposal to enter into loan negotiations with the Asian Development Bank (ADB) for a policy based loan of USD 620 million, structured across five sub programmes to advance Sri Lanka’s reform agenda alongside the International Monetary Fund’s (IMF) Extended Fund Facility (EFF).
Under this approval, the Department of External Resources has finalized loan negotiations with the ADB to secure the first sub-programme valued at USD 200 million designed to build a robust and inclusive financial ecosystem for micro, small, and medium enterprises (MSMEs). This financing comprises a policy based loan component of USD 100 million and a financial intermediation loan component of USD 100 million, both provided from the ADB’s ordinary capital resources. (Newswire)