ADB plans direct financing for SL’s private businesses

By Nuzla Rizkiya

Sri Lanka’s private sector will receive a fresh push in the near future as the Asian Development Bank (ADB) recently revealed that it is actively considering providing direct financing to private businesses in the country.

This plan is part of ADB’s broader efforts to support continued economic recovery under its five-year Country Partnership Strategy by facilitating the growth of Small and Medium Enterprises (SMEs). 

“Our private sector operations department is now in discussions to identify, prepare and structure projects under Public-Private Partnerships (PPPs) once the necessary framework is in place,” ADB Senior Economist Lilia Aleksanyan shared at a forum hosted by AmCham Sri Lanka this week.Aleksanyan also highlighted ADB’s currently active role in supporting private sector development especially through its sovereign and non-sovereign 
financing windows. 

Last year, ADB approved a US$100 million financial intermediary loan for participating financial institutions to improve access to much-needed working capital for local SMEs.On the equity side, the ADB has also invested US$ 40 million in John Keells Holdings to develop retail infrastructure such as supermarkets which contribute to job creation and sustainable development in the country.

“So our approach is to identify commercially viable projects and transactions that generate acceptable financial returns, but we are also focused on delivering measurable development outcomes,” Aleksanyan said.