A US$ 50 million loan from the Asian Development Bank (ADB) and a technical assistance grant of US$ 2.
million from the Japan Special Fund, have been pledged to reform Sri Lanka’s public finance management, said the ADB in a press release. In addition, the government of Sri Lanka will also contribute another US$ 10 million for the project.
The funds will be used to introduce new tax and treasury management systems that will help the government increase spending in lagging and conflict-affected regions.
The ADB loan has a 25-year term with a 5-year grace period and interest will be set according to its London interbank offer rate-based lending facility.
"The cornerstone of the loan will be to finance a project for the introduction of revenue administration management information and integrated treasury management information systems, which together will strengthen compliance, tax collection, and improve efficiencies and decision-making on the allocation and use of resources," said Senior Economist (Financial Sector) of the ADB's South Asia Department, K. Shin.
The technical assistance from the Japanese-government-funded Japan Special Fund, will be used to set up two IT management systems.
The project will also help develop skills of public finance managers using the new systems, said the ADB. |
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