ADB to co-finance project in Sri Lanka with new AIIB
The Asian Development Bank (ADB) has agreed to co-finance a yet to be identified project in Sri Lanka with the newly-created Asian Infrastructure Investment Bank (AIIB). ADB President Takehiko Nakao, who was in the country for a two-day visit, said at a media briefing in Colombo this week that the ADB would be happy to co-finance a project in Sri Lanka with the AIIB. He noted that “Sri Lanka is one possible country to start with co-financing” adding that while they had no specific project in mind at present they were currently looking at several projects.
The visiting President said that they were looking at Sri Lanka taking to reforms and prudent measures required to economic enhancement to ensure the country will continue to grow. The ADB which has allocated US$2.3 billion for the country’s development for the period of 2016-2018, is planning to support the capital market as well that would act as a support to the country’s budget as well. In this respect, Mr. Nakao explained that in the post war scenario Sri Lanka is poised to enhance growth based on good governance and inclusiveness.
Sri Lanka, he noted was politically and geographically positioned in a vital location especially with its ports linking South Asia with Asia and has a great potential for tourism. Asia is expected to achieve an overall growth of more than 6 per cent this year compared to the 5.8 per cent growth in 2015, in the wake of more countries now turning to commodity based investment economies. In this context, Mr. Nakao stated that Sri Lanka is impacted by these factors including the slower remittances it obtains from the Middle East.
Focus has been placed on improving learning skills in the science and engineering fields of education; in addition to providing assistance to infrastructure development that would assist to accelerate industrialisation. During his two day visit Mr. Nakao visited two ADB-financed projects of the Galle Grid Substation that would improve electricity services in the southern province and the Southern Expressway that cuts travel time to one and a half hours between Colombo and Matara. Sri Lankan SMEs were given an allocation from its funds amounting to $100 million through local banks. The ADB is also a partner in the Colombo Port’s East container Terminal where the ADB entered into an agreement to provide transaction advisory services.