The Cabinet has approved a proposal to obtain an amount of USD 200 million from the Asian Development Bank (ADB) subject to an annual interest rate of 2%.
Initial discussions between the ADB and the Sri Lankan Government were held to obtain two loan facilities worth USD 200 million each based on policies to implement two sub-programmes under the economic stabilization and reformation programme.
It has been proposed to implement accelerated reformations to enhance the conflict management framework and the stabilization in the finance sector under the first sub-programme while it has been proposed to develop an all-inclusive resistant finance system under the second sub-programme.
Accordingly, the proposal submitted by the President as the Minister of Finance, to enter into a loan agreement with the ADB to obtain USD 200 million with a repaying period of 25 years inclusive of a grace period of 05 years in relation to the first sub-programme, was approved by the Cabinet.
