9 June 2023 05:52 am Views - 315
Sri Lanka will be able to speed up its efforts in reviving its economy as it has obtained approval from the Asian Development Bank (ABD) to access concessional financing.
“Sri Lanka is now eligible for ADB support including concessional and market-based financing, technical assistance, policy advice, and knowledge solutions that together comprise a comprehensive suite of options to address the crisis,” the ADB said in a statement today. Access to concessional financing will also ease debt servicing pressures through more favourable lending terms.
The statement noted that the availability of concessional assistance, offered at low-interest rates, broadens Sri Lanka’s options to bridge its urgent development financing needs to restore economic stability and deliver essential services, particularly to the poor and vulnerable.
In May, Sri Lanka requested the ADB to reclassify the island nation so that it can have access to low-interest concessionary loans.
In December 2022, a similar request was approved by the World Bank, which made the island nation eligible for concessional financing from the International Development Association (IDA).
ADB Director General for South Asia Kenichi Yokoyama affirmed that ADB would further enhance its support for the people of Sri Lanka as the country responds to the deep crisis that has severely undermined their livelihoods and well-being.
“The availability of concessional assistance will help Sri Lanka to lay the foundation for economic recovery and sustained, inclusive growth,” he said.
Eligibility for concessional resources among the developing member countries of ADB is based on gross national income per capita and credit worthiness.