ADB grants US$ 203 million to save Sri Lankans from starving
At a time where Sri Lanka struggling to survive in the current economic storm, the Asian Development Bank (ADB) has stepped into rescue the island nation coming up with a new country partnership strategy (CPS) for Sri Lanka, 2023–2027 in consultation with astute leader President Ranil Wickremasinghe.
President Wickremasinghe as the Finance Minister of Sri Lanka is making every effort to garner dorner agency assistance such as World Bank , International Monetary Fund,ADB and foreign donor countries to revitalize the economy damaged by ill advised state leaders and top officials of monetary and fiscal institutions.
n consultation with the government headed by the President , ADB is preparing a new CPS for Sri Lanka, 2023–2027 that will support post-pandemic recovery and address constraints to growth.
It will be aligned with the country priorities identified in the country partnership strategy (CPS) for Sri Lanka, 2023–2027 that is being formulated
ADB’s assistance will focus on macroeconomic management to ensure debt sustainability, fostering private sector development, rural development, skills development, small and medium-sized enterprises, social protection, and renewable energy, among others.
ADB will provide sovereign and non sovereign investments, capacity building, and knowledge to help Sri Lanka recover from the COVID-19 pandemic and lay a strong foundation for inclusive and sustainable development.
The government of Sri Lanka yesterday (Sep 09) signed an agreement for financial assistance of USD 203 million from the Asian Development Bank (ADB) and the Japan Fund for Prosperous and Resilient Asia and the Pacific (JFPR) to implement the Food Security and Livelihood Recovery Emergency Assistance Project.
According to the Department of External Resources ,Sri Lanka is planning to borrow USD 200 million from the ADB to finance the implementation of the said project which is expected to ensure access to food and protect the livelihoods of the poor and vulnerable, especially women and children.
The loan of USD 200 million will be provided from ADB’s Ordinary Capital Resources.In addition, the JFPR will provide a grant of USD 03 million through ADB to finance the project activities.
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 Sri Lankan 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 project is scheduled to be completed by February 29, 2024.The relevant loan 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 were signed by Secretary to the Ministry of Finance, Mahinda Siriwardana and Chen Chen, Country Director, ADB Resident Mission today, on behalf of the Sri Lankan government and ADB respectively.
To date, the Asian Development Bank (ADB) has committed 479 public sector loans, grants, and technical assistance totaling $11 billion to Sri Lanka. Cumulative loan and grant disbursements to Sri Lanka amount to $8.64 billion.
ADB’s ongoing sovereign portfolio in Sri Lanka includes 46 loans and 2 grants worth n 2021, ADB disbursed $684 million to Sri Lanka and committed $460 million in project lending. The technical assistance commitments totaled $3.95 million.