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Last Updated : 2024-05-19 14:30:00
8 December 2023 03:48 pm - 30 - {{hitsCtrl.values.hits}}
Colombo (Daily Mirror) - In response to the economic and sovereign debt crises faced by Sri Lanka since April 2022, the Asian Development Bank (ADB) has approved a concessional loan of $200 million to help stabilize the country's finance sector.
The loan is part of the Financial Sector Stability and Reforms Program, which consists of two subprograms, each with a funding of $200 million.
The first subprogram, implemented in 2023, focuses on short-term stabilization and crisis management measures. The second subprogram, scheduled for 2024, aims to implement structural reforms and long-term actions to restore growth in the banking sector.
The program's objectives include strengthening the stability and governance of Sri Lanka's banking sector, improving the asset quality of banks, and promoting sustainable and inclusive finance, particularly for women-led micro, small, and medium-sized enterprises.
According to the latest review by the International Monetary Fund (IMF), Sri Lanka's economy is showing initial signs of stabilization, although a full recovery is not guaranteed.
Takafumi Kadono, ADB Country Director for Sri Lanka, emphasized that the program aligns with the country's strategy of maintaining finance sector stability and ensuring banks are well-positioned for recovery. The anticipated outcome is a stable financial system that provides affordable finance to various sectors of the economy.
This loan is a continuation of ADB's crisis response, following the approval of a special policy-based loan for Sri Lanka in May 2023. It also aligns with the IMF's Extended Fund Facility, which supports Sri Lanka's efforts to regain financial stability.
The program is consistent with the government's reform agenda, which includes strengthening the operational independence of the Central Bank of Sri Lanka (CBSL) and designating it as the country's macroprudential authority.
Close collaboration with the IMF and the World Bank has been maintained in designing targeted regulatory reforms for the banking sector and strengthening the deposit insurance scheme.
In addition to the loan, ADB will provide $1 million in grant funding from its Technical Assistance Special Fund to offer advisory support, knowledge sharing, and capacity building to Sri Lanka's Ministry of Finance and CBSL.
ADB remains committed to promoting prosperity, inclusivity, resilience, and sustainability in Asia and the Pacific, while also continuing efforts to eliminate extreme poverty.
Voter Friday, 08 December 2023 04:03 PM
Loan upon loan, keep on loading sinking ship with further weight, no productivity but corruption is on the rise, Ministers keep whacking left, right and centre ….wonder of Asia.
warren Friday, 08 December 2023 07:23 PM
So the solution is to vote for "Mlimawa", right? No taxes, no borrowings, no restructuring of loss-making and cash-fraining state institutions and no Foreign Investments because it amounts to the sale of national assets! What a wonderful world we would have....ha ha ha....
Reza Dole Friday, 08 December 2023 08:03 PM
Very true. Loading a sinking ship.
Voter Saturday, 09 December 2023 01:28 AM
Solution is vote for Ranil Rajapakse and plunder if there’s anything left..
This is reality Friday, 08 December 2023 04:25 PM
If its a loan, surely there would be conditions. And we thought efforts are underway for debt restructuring. Doesn't this only increase our obligations further?
CitizenP Friday, 08 December 2023 04:50 PM
LOAN....LOAN.....LOAN....LOAN... Why can't we have a separate ministry ... MINISTRY OF LOANS.
taxpayer Friday, 08 December 2023 05:18 PM
Let's party
Bimal Friday, 08 December 2023 05:38 PM
Thank you Sajith for convincing the ADB to do that with many rounds personally initiated with the SME sector
Sunlight Friday, 08 December 2023 05:56 PM
Solve the ethnic problem, everything will improve.
Sagala Friday, 08 December 2023 05:58 PM
This is not a Grant but a Loan. Does this not put an additional burden on the country as loans get piled up more and more and repayment by generations unborn will become a major issue, Our Opposition Parties are not alive to this and do not seem to apprise the ADB or whoever is extending the LOAN to warn the Government to exercise strict caution as to the manner the Loan is disbursed. There is utter waste in all spheres and particularly where Politicians go on foreign jaunts without trying to save the little foreign exchange we have.
Shamelessly Borrowing to Show Off Friday, 08 December 2023 06:05 PM
Never ending loans
Stop Loans Saturday, 09 December 2023 01:57 AM
Most countries / companies takes loans to improve themselves. SL takes loans so that they have more money to spend on projects not beneficial to the majority but to a minority. But majority
sss Friday, 08 December 2023 06:09 PM
financial sector - all depend on integrity. Hope ADB knows that there is none of that in SL
Jayantha Friday, 08 December 2023 06:19 PM
Loan after loan. These international banks and institutes are the main culprits for economic failure in countries like Sri Lanka. All loans offered by these rogue organization should be investigated and probably sued in an international court for aiding corruption.
Mohamed Ifaz Inamdeen Saturday, 09 December 2023 08:35 AM
Absolutely right. These socalled money-lenders are wolf in sheep's clothing. On one hand they pretend as clean gentlemen; but on the other, they've disgusted ulterior motives.
Raven Friday, 08 December 2023 06:22 PM
Thank you, Ranil.
Che Friday, 08 December 2023 07:10 PM
Very likely a great of this loaned money would be spent on external Technical Assistance, employing foreigners, not Sri Lankans.
DJ Friday, 08 December 2023 08:07 PM
Good luck, first the 225 pockets then Bankrupt again.
SSZ KHAN Friday, 08 December 2023 09:19 PM
Loans can not stabilize the country. ONLY self reliance with continued productivity based on a system free of corruption and commonalsm can stabilize the countr
Jude Friday, 08 December 2023 10:01 PM
SL drowning in debt yet More Loans are granted, so these agencies can dictate terms and control Geo political scenarios!! Yeah.
Jude Friday, 08 December 2023 10:03 PM
SL should change this name to Sri Loans!!
Gb Saturday, 09 December 2023 12:05 AM
We the people have to repay this loan which is going towards banks? Can't banks just cut bonuses and staff? Why do poor people have to pay for loans for these giants? Surely they make loads of profit
Pantha Saturday, 09 December 2023 12:41 AM
Loan Loan and Loan. How long can we borrow loan to feed thirsty politicians. Until such time we feed the politicians there is no way we can feed the people.
Sleazy president Saturday, 09 December 2023 02:34 AM
The president is referred to as the "Loan ranger" in the Asia.
Nilmini Welivita Saturday, 09 December 2023 02:36 AM
All our problems are gone now thanks to our honourable president. May the triple gem bless him.
Hard Truth Saturday, 09 December 2023 03:25 AM
As per raththanarang, the Ship is sailing with $200 million worth of banknotes in a container. Once reached, the treasury will distribute the amount of LKR 10,000 to each government employee for their impeccable public service. Instead of Sri Lanka, better make it Loan Lanka.
annecunt Saturday, 09 December 2023 04:07 AM
make sure the money does not go th parlimentarians pockes .specialy rajapaksa pockets
Mk Saturday, 09 December 2023 08:07 AM
BEFORE ELECTION COMES GOOD FOR OUR POLITICIANS. TAKE THE MONEY AND VANISH TO FOREIGN COUNTRIES. FINAL FINAL FINAL GAME. WE HAVE TO SUFFER MORE IN IN FUTURE.
Ron Saturday, 09 December 2023 10:35 AM
What best is to create a redundancy plane for all useless crooks thives lairbilties to exist from parliament then replace with proper macanisam restructuring system to function the country for the future prosperity if not the country will head towards disaster prevention is better than cure.....Mr president must seriously consider
Aiyyo Banda Sunday, 10 December 2023 08:22 PM
If you get into a mental mania of getting loans you dont think the serious consequences. Since I am in power I dont care.It is like a man definitrly needs his quarter pint of liquor every day.no point saying repeatedly and uttering generations to generations have to pay these loans!!! But we will have to keep in mind successive Govts can do the same thing. Best thing is to shut up thinking this abdurd mania and try and live our life.
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