Press Releases
USD 165 million Credit Line to the Small and Medium-sized Enterprises (SME) with the Financial Assistance from the Asian Development Bank
The
The government of Sri Lanka entered into loan and grant agreements with the Asian Development Bank (ADB) to obtain a loan of USD 165 million and grants worth of USD 3 million from the Japan Fund for Poverty Reduction (JFPR), to provide a credit line to the Small and Medium – Sized Enterprises (SMEs) through ten qualified Participating Financial Institutions (PFIs). The Ministry of Finance will be the Executing Agency of the Project, “Third Additional Financing of the Small and Medium – Sized Enterprises Line of Credit (SMELoC Third Additional Financing) Project” funded under the above loan and the grants.
In accordance with the National Policy Framework of the Government “ Vistas of Prosperity & Splendour”, it was decided to provide more assistance to the SME Sector by providing an additional loan of USD 65 million to upgrade and strengthen SME sector to meet the expectations of the country as the initial loans, USD 100 million USD 75 million from ADB have already been utilized. The Government’s objective is to maximize the beneficiaries of these financial assistance which are currently recorded as 1,755 SMEs supported by the first loan and 1,774 SMEs supported by the second loan and supplementary We-Fi grant, which is USD 9.5 million.
With the outbreak of coronavirus pandemic in early 2020, the Government requested to top up the initially planned loan of USD 65 million with USD 100 million as more assistance is required to mitigate the negative impact on SMEs. Accordingly, out of the total USD 165 million;
- USD 100 million will be allocated as SME Emergency Response Component for re-energizing the affected SMEs by providing short-term working capital in the productive sectors including, manufacturing, agriculture & agro processing, fisheries, tourism, export oriented businesses etc.
- USD 45 million will be allocated for the continuation of the ongoing SME credit line
- USD 20 million will be allocated for providing affordable credit line to tea smallholders on a pilot basis (This component will be supported by USD 3 million technical and financial Grants)
The loan funds will be channeled through ten qualified PFIs, namely People’s Bank, Bank of Ceylon, Pradeshiya Sanwardana Bank, Commercial Bank of Ceylon Public Limited Company (PLC), Sampath Bank PLC, Hatton National Bank PLC, DFCC Bank PLC, National Development Bank PLC, Nation’s Trust Bank PLC and Seylan Bank. The overall project is scheduled to be completed by 30th September 2023.
In this connection, Mr. S R Attygalle, Secretary to the Ministry of Finance on behalf of the Government of Sri Lanka and Mr. Chen Chen, Country Director of ADB Sri Lanka Resident Mission on behalf of ADB, signed the Loan and Grant Agreements to obtain USD 165 million worth of loan and USD 1.25 million worth of grant on 25th November 2020 at the Ministry of Finance.
This Press Release is issued by the Department of External Resources on 25th November 2020.
Foreign Currency Term Financing Facility (FTFF) for the Government of Sri Lanka - 2020
Foreign Currency Term Financing Facility (FTFF) for the Government of Sri Lanka - 2020
In response to the notice calling for Request for Proposals (RFPs) for FTFF dated 17.06.2020 and 29.06.2020 it is informed that as at 17 .07.2020 the following proposals have been received:
a. Hongkong and Shanghai Banking Corporation Limited and/or its affiliates, State Bank of India, Singapore Branch, and Credit Suisse AG, Singapore Branch, and/or its affiliates
b. Acuity Partners (Pvt) Ltd and Industrial & Commerce Bank of China (London) PLC
Sgd: Secretary, Ministry of Finance, Economic and Policy Development/Secretary to the Treasury.
17.07.2020
Sri Lanka COVID-19 Emergency Response and Health Systems Preparedness Project – USD 128.6 million
In response to the increasing COVID 19 incidence in the country, the Government of Sri Lanka has initiated urgent and effective measures to slow the spread of the virus by testing and treating patients, contact tracing of those found positive, limiting travel, mandatory quarantine for anyone coming from countries affected by COVID-19, closing borders to prevent transmission from further travelers, canceling large gatherings and creating awareness.
In view of the exigency of battling the effects of the COVID-19 outbreak, the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD) of the World Bank Group agreed to provide financing assistance amounting to United States Dollars (USD) 128.6 million. These funds will be mobilized through the Government Budget during the period from 2020 to 2023.
The project will focus on limiting local transmission of COVID-19 by strengthening capacities of the health system for contact tracing, case finding, confirmation, reporting, and responding to surge capacity through trained and well-equipped health workers and medical officers of health and primary health doctors and equipped facilities, strengthening Surveillance and Response Systems, strengthening health care facilities capacity for emergency response, improving community engagement and risk communication and provision of social and financial support to households.
Further the project will support the strengthening of national and sub-national institutions for prevention and preparedness through strengthening the National Institute of Infectious Diseases (NIID), establishment and strengthening of subnational emergency operation centers, the establishment of Bio-Safety Level (BSL) 3 laboratory facilities at the National Medical Research Institute (MRI) and strengthening laboratory facilities and information systems.
The signing of the agreements of Sri Lanka COVID-19 Emergency Response and Health Systems Preparedness Project took place on April 03, 2020, and Mr. S R Attygalle, Secretary to the Ministry of Finance, Economic and Policy Development, and Ms. Idah Pswarayi-Riddihough, Country Director of the World Bank signed the agreements on behalf of the Government of Sri Lanka and the World Bank, respectively.
Ministry of Finance, Economic and Policy Development
April 03, 2020
Japan Provides Human Resources Development Scholarships for the Sri Lankan Public Sector
Japan Provides Human Resources Development Scholarships for the
Sri Lankan Public Sector
The Japanese Grant Aid for Human Resources Development Scholarship (JDS) Programme was introduced in Sri Lanka in 2010 by the Government of Japan in order to provide opportunities to the executive level public sector officials to undergo Master Degree Programmes in prominent universities in Japan.
Accordingly, the First Framework (2010-2013) and the Second Framework (2014-2017) of this programme were successfully completed in 2013 and 2017 respectively. The Third Framework (2018–2021) was started in 2018 to continue this programme for a further period of four years. After considering the necessity of further career development of JDS fellows, the Government of Japan has agreed to offer a scholarship for PhD programmes at most 2 slots per batch. Accordingly, altogether 165 (15 per year) opportunities for Master Degree Programmes and 06 opportunities for PhD programmes have been provided under this scholarship programme.
The selection process of the Third batch of the Third Framework has already been completed and the selected officials are scheduled to commence their studies in September 2020. In order to facilitate these officials, the Government of Japan has agreed to offer a grant assistance of Japanese Yen 269 million (approximately Rs. 457 million) to Sri Lanka in 2020.
The Government of Sri Lanka expects that the public officers who will be benefited under this programme will contribute to the social and economic development of the country in a productive manner with self–confidence and also contribute to strengthening the existing bilateral relationship between two countries
Two Exchange of Notes between the two Governments and Grant Agreements between the Government of the Democratic Socialist Republic of Sri Lanka and the JICA for the implementation of the Human Resources Development Scholarship Programme was signed on 13th July 2020 at the Ministry of Finance, Economic and Policy Development. Relevant documents were signed between Mr. S R Attygalle, Secretary, Ministry of Finance, Economic and Policy Development on behalf of the Government of Sri Lanka, His Excellency Mr. Akira Sugiyama, Ambassador of Japan in Sri Lanka on behalf of the Government of Japan and Mr Fusato Tanaka, Chief Representative of JICA on behalf of the JICA.
13 .07.2020
Ministry of Finance, Economic and Policy Development
Financial Assistance of USD 150 million from the Asian Development Bank (ADB) for the Implementation of the Tranche 2 of the Second Integrated Road Investment Program
The Government of Sri Lanka and the Asian Development Bank (ADB) entered into a Framework Financing Agreement on 14th August, 2017 with regard to the financial arrangements for the Second Integrated Road Investment Program.The investment program will improve the accessibility to the road network from rural areas and thereby increase the contribution of the rural population for economic and social development of the country.
The total estimated cost of the programme is USD 1084 million, out of which USD 900 million will be obtained in several tranches from ADB. The first tranche amounting to USD 150 million obtained in 22nd November, 2017 is being invested in the ongoing project activities and the subsequent tranches are planned to be obtained based on the financing requirements of the Program.
The Second Integrated Road Investment Program will upgrade and maintain 3400 km of rural access roads and 340 km of national roads in Northern, Eastern, Uva, and Western Provinces. In addition, improvement of capacity of road agencies with respect to safeguards, road safety, maintenance, research, road design and construction will be carried out under the program.
In this connection, Dr. R H S Samaratunga, Secretary of the Ministry of Finance entered into a loan agreement with ADB on behalf of the Government of Sri Lanka and Mr. Nihal Sooriyarachchi, Chairman of Road Development Authority entered into a Project Agreement with ADB on the 13th November, 2019, at the Ministry of Finance. Ms. Manjula Amerasinghe, Officer in Charge of ADB, Sri Lanka Resident Mission signed the two agreements on behalf of ADB.
Issued by the Department of External Resources on 13th November, 2019.