Cabinet approves proposal seeking US$ 565 million in loans from ADB
The cabinet of Ministers has approved a proposal enabling the Government to enter into several agreements with the Asian Development Bank (ADB).
The proposal was submitted by Prime Minister Mahinda Rajapaksa as the Finance Minister seeking nearly US$ 565 million in loans.
The cabinet announced that the ADB has consented to extend US$ 165 million under a scheme to provide assistance for Small and Medium Sized Enterprises (SMEs).
From among the fund, US$ 100 million is to be used for emergency response to implement precautionary measures to address the impact of COVID-19 on SMEs and entrepreneurs.
Under the proposal submitted by the Prime Minister, the Government has sought a concessionary loan of US$ 400 million for the Secondary Education Sector Enhancement Project.
The Government has also sought a further US$ 1.65 million grant under a Japanese program to minimise poverty.
According to the Daily FT, the Prime Minister’s proposal comes at a juncture where the Government is struggling to find low-cost funding to boost growth and continue investment projects, while managing its debt to GDP ratio.