USD 50 million loan from ADB to strengthen RDB bank projects

The government facilitated the Pradeshiya Sanwardana Bank, by providing a sovereign guarantee, to obtain a loan amounting to USD 50 million from the Asian Development Bank (ADB) to accelerate new government initiatives to develop micro, small and medium enterprises, Treasury announced.  

The ministry said this new financial assistance would enable government’s vision 2025 – A Country Enriched policy document has identified the importance of enhancing the access to finance for the micro, small and medium enterprises. Accordingly, the Government launched the “Enterprise Sri Lanka” Loan Schemes on an Island-wide basis in 2018, to create an entrepreneurial society, particularly amongst our youth, by providing access to capital at concessionary interest rates. 

The project will increase employment opportunities in micro, small and medium enterprises.  Accordingly, the RDB’s capacity to serve its micro, small and medium enterprise clients will be strengthened by expanding RDB operations, strengthening RDB’s operational capacity and enhancing the capacities of micro, small and medium enterprises to access financial services.  
  
In this connection, Dr. R H S Samarathunga, Secretary to the Ministry of Finance on behalf of the Government of Sri Lanka and Ms. Sri Widowati, Country Director of ADB Sri Lanka Resident Mission on behalf of ADB, signed the Guarantee Agreement on 14th June, 2019 at the Ministry of Finance.