Euro 90 mln European Investment Bank loan for SL’s public-private sector support
View(s):The European Investment Bank has signed a EUR 90 million loan agreement with the Government of Sri Lanka aimed at supporting both private and public industries and the services sector.
A media release from the European Union (EU)’s Colombo office said that the money is to be used on projects across the country that contribute to climate change mitigation and support development of the local private sector through finance to small and medium enterprises.
The project aims to improve small and medium enterprises access to long term financing, and will help in re-establishing the economy emerging from conflict. The project also contributes to the European Union’s global objective of climate change mitigation and adaptation, and supports the Government of Sri Lanka to achieve its renewable energy generation target by 2015, the EU said.
The facility is expected to contribute towards increased investment that will also lead to positive effects particularly in the fields of job creation, poverty alleviation and human welfare. The funds will be channeled through the Commercial Bank of Ceylon (CBC), DFCC Bank and the Regional Development Bank.
EU Ambassador David Daly was quoted as saying that ‘increased investment aimed at targeting the public and private sector companies in a wide range of sectors, including the service industry, has potential to create new jobs and fuel economic growth thereby directly befitting the people of Sri Lanka. This initiative by the European Investment Bank demonstrates Europe’s motivation towards supporting sustainable economic growth and is a part of EU’s wider engagement to supporting the country’.
Total EU assistance during the period 2005-2015 amounts to approximately EUR 670 million which includes a total of 250 million provided by the European Investment Bank.