The proposal to enter into an agreement with the Asian Development Bank (ADB) to secure the first $200 million of a $400 million credit facility under the Economic Stabilisation and Reformation Programme has been accepted by the Cabinet of Ministers.
The government claims that early talks with the ADB on two loan facilities totaling US$200 million each were held by the Sri Lankan government in order to implement two sub-programs under the economic stabilisation and reformation programme.
Under the first sub-programme, it has been suggested to speed reforms to improve the framework for conflict management and the stabilisation of the finance sector.
Under the second sub-programme, it has been suggested to create an inclusive resilient finance system.
The proposal to engage into a loan agreement with the Asian Development Bank in this respect, made by President Ranil Wickremesinghe in his capacity as the Minister of Finance, has been approved by the Cabinet.
It has been suggested to borrow $200 million, with a 25-year repayment schedule that includes a 5-year grace period in connection to the first sub-programme, and an annual interest rate of 2%.
