The government today (17) signed loan agreements to obtain US$ 300 million from the Asian Development Bank (ADB).

Loan Agreements were signed between the government and the Asian Development Bank at the Treasury in Colombo by Dr. Harshana Suriyapperuma, the Secretary to the Ministry of Finance, Planning and Economic Development, on behalf of the government of Sri Lanka and Takafumi Kadono, the Country Director of the ADB Sri Lanka Residence Mission, on behalf of the Asian Development Bank.

The government held discussions with the ADB to mobilize US$ 300 million under the financial sector stability and reforms program, strengthening macroeconomic resilience and transparency program and sustainable tourism sector development program.

The Financial Sector Stability and Reforms Program was designed to complete the multiyear structural reforms, and to strengthen the regulatory capacity of Central Bank of Sri Lanka (CBSL), the Ministry of Finance said in a statement.

Under the program, Sri Lanka will receive USD 100 million from ADB’s Concessional Ordinary Capital Resources following the completion of 11 policy actions aimed at strengthening the stability and governance of the banking sector, strengthening the asset quality of the banking sector and deepening sustainable and inclusive finance.

Under the Strengthening Macroeconomic Resilience and Transparency Program, Sri Lanka will receive USD 100 million from ADB’s Concessional Ordinary Capital Resources following the completion of 11 policy actions aimed at improving public expenditure management, improving domestic resource mobilization and strengthening the enabling environment private sector participation.

The Finance Ministry noted that the Sustainable Tourism Sector Development Program (Subprogram 1) comprises a Policy Based Loan (PBL) and an investment loan component. Under the PBL component, the country will receive US$ 70 million from the ADB’s concessional Ordinary Capital resources. It is intended to strengthen the sector by implementing structural reforms, capacity-building initiatives, and policy revisions aimed at promoting greater private sector participation and enhancing overall institutional effectiveness through the PBL component.

Sri Lanka will also receive US$ 30 million under the investment component from ADB’s Ordinary Capital Resources to develop and expand the tourism potential and carrying capacity of the Trincomalee and Dambulla (including Sigiriya area) destinations. Additionally, the component will focus on the activities to manage tourist congestion, extend the average length of stay, and increase the tourism sector’s contribution to the regional economy, the Finance Ministry added further.