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ADB to disburse US $ 203mn emergency loan to support SL’s poor and vulnerable

10 September 2022 06:25 am - 11     - {{hitsCtrl.values.hits}}

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Treasury and Finance Ministry Secretary K.M. Mahinda Siriwardana (extreme right) and ADB Country Director for Sri Lanka Chen Chen (centre) sign agreements in the presence of Ambassador of Japan to Sri Lanka Mizukoshi Hideaki

 

  • ADB’s loan amounts to US $ 200mn, whereas JFPR extends a grant of US $ 3mn to finance project activities
  • Project will provide crucial support to government in extending assistance to vulnerable groups and restoring livelihoods of poor– Finance Ministry Secretary
  • For at least three months, project will support temporary increase in monthly cash grant amount and beneficiaries of existing social assistance programmes
  • Project will also upgrade information technology systems and digital tools for Samurdhi

Sri Lanka will receive an emergency assistance loan amounting to US $ 203 million from the Asian Development Bank (ADB) to ensure the poor and vulnerable, especially women and children, have access to food and have their livelihoods protected.


The agreement for the same was inked between the ADB and Government of Sri Lanka yesterday.
While the emergency loan from the ADB is of US $ 200 million, the Japan Fund for Prosperous and Resilient Asia and the Pacific (JFPR) will provide a grant of US $ 3 million via the ADB to finance the project activities.
The loan funds have been repurposed from the ongoing ADB portfolio.


Signing the agreement was Treasury and Finance Ministry Secretary K.M. Mahinda Siriwardana from the Government of Sri Lanka and ADB Country Director for Sri Lanka Chen Chen, who signed on behalf of the ADB. The loan signing was witnessed by Ambassador of Japan to Sri Lanka Mizukoshi Hideaki.


Commenting on the assistance, Siriwardana said the emergency loan would provide the much-needed financing to ensure access to food and protect the livelihoods of the poor and vulnerable during the unprecedented economic crisis that Sri Lanka is facing at present.


“The project will provide crucial support to the government in extending assistance to vulnerable groups and restoring the livelihood of the poor and vulnerable, including farmers,” he said.

 Amid the current economic difficulties, food insecurity has severely affected the people of Sri Lanka. The assistance will expand direct financial support for the poor and vulnerable while boosting livelihood development activities and agricultural production and enhancing social protection systems.


Chen shared that the loan forms part of the ADB’s emergency response package to the multifaceted challenges facing Sri Lanka. The ADB has been addressing immediate needs, such as essential medical supplies, materials for water treatment and working capital for small and medium-sized enterprises by reallocating surplus loan proceeds from ongoing loans.


“Moving forward, the ADB will continue to work closely with development partners to support Sri Lanka’s recovery from the economic crisis,” said Chen.


For at least three months, the project will support the temporary increase in the monthly cash grant amount and the number of beneficiaries of the existing social assistance programmes. In addition, it will replace the monthly food vouchers for pregnant and lactating women with higher-value cash grants, while extending support to undernourished children under the age of two.


The project will also upgrade information technology systems and digital tools for the Samurdhi programme 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.


To promote advanced practices and technologies for precision agriculture and improved crop productivity among farmers, especially female farmers, the grant will support the upgrading and delivery of the Good Agricultural Practices certification programme.

 


  Comments - 11

  • Aragalaya Saturday, 10 September 2022 10:00 AM

    When the ADB granted the loan, they must have considered that funds are also needed to maintain the 37 newly appointed State Ministers!

    Nihal S Saturday, 10 September 2022 12:08 PM

    Please make sure this money goes to the needy, not to maintain new 37 State Ministers and the corrupted Government. WE expect the Ministry Secretary who signed the agreement to be fully accountable for the proper use and reporting of this loan. Thank you.

    Ceylonese Saturday, 10 September 2022 12:48 PM

    Sri Lanka is like a spoilt child always asking for aid from other countries and organisations from around the world. Even after 76 years of Independence nothing has changed. I wonder what happened to millions of Tsunami aid provided by these organisations and western countries especially Britain Australia Canada Japan etc. who always came to our aid wthout any questions asked what happened to all that aid?

    Rohitha Saturday, 10 September 2022 01:20 PM

    There's no malnutrition or poverty here. Use the money to build something extravagant

    Ram Saturday, 10 September 2022 02:55 PM

    Please ADB you facilitate the distribution. Please don't give the money to government as it cannot be trusted

    Cherath Saturday, 10 September 2022 06:54 PM

    How can the government meet the repayments and the interest on top of the current liabilities. There certainly is not a trace of income generation plan in sight. Talk is all about loans and more loans.

    Dhushana Saturday, 10 September 2022 08:09 PM

    Must give that money to that idiot Jhonny to start new highway projects

    Robin Banks Sunday, 11 September 2022 09:18 AM

    Most of the money is going to end up in poor and vulnerable pohottuwa politicians.

    LankanLover Sunday, 11 September 2022 12:03 PM

    I highly doubt that this will reach the vulnerable. A humble request to ADB, Kindly do it by yourself to the vulnerable.

    S. V. Nadarajah Sunday, 11 September 2022 04:59 PM

    Dear ADB, You're giving this being fully aware, that 225 theives will pilfer it. In that case you are also part of the criminals cartel. May be we have to doubt if your officials are also "benefiting"

    Demuni Uduwara Monday, 12 September 2022 05:48 AM

    Imminent and incessant interferences from the politicians should be discouraged and transparency in cash transactions is a must and an independent body should be appointed to scrutinize its disbursements.


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