May 29, 2023
2 mins read

Crisis-hit Lanka gets $350 mn loan from ADB

The bank said that the program is part of a broader package of financial assistance anchored by the IMF’s Extended Fund Facility for the country…reports Asian Lite News

The Asian Development Bank (ADB) on Monday said it has approved a $350 million special policy-based loan to provide budget support to Sri Lanka for the stabilisation of its crisis-hit economy.

The bank said that the program is part of a broader package of financial assistance anchored by the International Monetary Fund’s Extended Fund Facility for the country, which aims to stabilise the economy and lay the foundation for economic recovery and sustained growth, reports Xinhua news agency.

The ADB said Sri Lanka is facing a severe and unprecedented economic crisis, and high inflation has eroded purchasing power, livelihoods have been affected, and past development gains have been reversed.

“The ADB is concerned about the deep crisis in the country and its impact on the people of Sri Lanka, especially the poor and the vulnerable, particularly women,” said ADB President Masatsugu Asakawa.

The lender is committed to standing with Sri Lanka as it addresses its present challenges and strides toward economic stabilization, sustainable recovery, and inclusive growth, said Asakawa.

Sri Lanka has embarked on bold reforms to address the causes of both internal and external imbalances and return to a sustainable debt trajectory, the ADB said.

The country faces a long road to recovery and must remain steadfast in the implementation of necessary reforms, which include enhancing tax revenue collection, strengthening public financial management, improving performance of state-owned enterprises, ensuring autonomy and independence of the central bank, safeguarding financial sector stability, and bolstering governance frameworks, the ADB said.

As these measures are implemented, it is essential to ensure that adequate social protection is provided and implementing governance reforms and anti-corruption measures will be critical, it added.

In 2022, in close coordination with development partners, the ADB repurposed $334 million of existing loans as emergency response to support the import of essential items such as fertilizers, medicines, chemicals for water treatment, working capital for small and medium-sized enterprises, and cash transfers to the poorest and the most vulnerable.

ALSO READ: Lanka to ensure religious harmony

Previous Story

Visa Foundation teams up with Emirates Nature-WWF for green economy

Next Story

Jadeja’s Heroics Give CSK IPL Glory

Latest from -Top News

Call to Greylist Pakistan Over Terror Links

Freddy Svane, the former Danish Ambassador to India, said that it is high time for the world to acknowledge that Pakistan remains the epicentre of terrorism in the region….reports Asian Lite News

Colombia backs India on terror

The change in tone from Colombia is seen as diplomatically significant, especially given its forthcoming role as a non-permanent member of the United Nations Security Council (UNSC). In a diplomatic correction welcomed

Yunus under fire for poll claims

The backlash was sparked by Yunus’ comments during a visit to Japan earlier this week, where he reportedly said that “no one except one party wants elections in December.” Bangladesh’s fragile political
Go toTop

Don't Miss

Indefinite delay in fuel shipments makes situation worse in Lanka

Wijesekera said public transportation, power generation and industries would be

Sri Lanka Backs India on Canada’s Allegations

Ties between India and Canada have been strained after Justin