ADB gives cash infusion of $5bln to raise Sri Lanka status

The Asian Development Bank (ADB) has allocated up to US$1 billion per year for the next five years during 2018-2022 to help Sri Lanka transition to the upper middle income country status, the bank announced on Thursday in Colombo.

Addressing  a media briefing on the new Country Partnership Strategy, the bank’s Country Director Sri Widowati told journalists that the assistance from the ADB was closely linked to the government’s policy with two objectives in mind namely to strengthen the drivers of growth; and improve the quality of growth of the Sri Lankan economy.

Sri Lanka in 2016 was positioned at $3835 in terms of per capita GDP and its poverty levels have reduced significantly.
ADB Senior Country Economist Tadateru Hayashi said, “We feel that the basic infrastructure is developed and the road density is the best in South Asia.” 

Pointing out the challenges, he identified the declining tax to GDP ratio; the declining trend in exports of garments, tea and rubber; higher incidence of poverty on the estates compared to the urban and rural areas; and the increasing inequality between incomes.
The ADB has 31 ongoing projects in the country spending $3.4 billion with the Colombo Port Terminal project being a crucial one so far where the bank acts as a transaction advisor.

The bank will look at improving the Doing Business index by checking on the areas of resolving insolvency, getting credit and enforcing contracts.
As part of its policy reforms with the aim of strengthening State Owned Enterprises (SOEs), the ADB is working with the Ceylon Electricity Board (CEB), the National Water Supply and Drainage Board (NWSDB), Sri Lanka Railways, Sri Lanka Ports Authority and the establishment of an Expressway Corporation.

As part of their improvements for an Economic Corridor, the ADB is looking at identifying new sectors to promote for export apart from the traditional industries. 
Plans are underway to engage in the higher education sector by establishing a new university as a public private partnership and move into funding the health sector as well. (Sunimalee)