Press briefing of Cabinet Decision taken on 2023-09-25

Obtaining policy based special lending facility from the Asian Development Bank for the Financial Sector Stability and Reform Programme

- The Government of Sri Lanka has conducted initial discussions with the Asian Development Bank to obtain 02 policy based lending facilities amounting to US$ 200 million each for implementing two sub-programmes under the Financial Sector Stability and Reform Programme. Under the said first Sub-programme, it has been proposed to implement immediate reforms to enhance the crisis management regulatory framework and stabilize the financial sector, and under the second Sub-programme, it has been proposed to build a resilient and inclusive financial system. The proposal made by the Hon. President in his capacity as the Minister of Finance, Economic Stabilization and National Policies to enter into a loan agreement with the Asian Development Bank to obtain US$ 200 million for the first Sub-programme at an interest rate of 2% per annum, with a repayment period of 25 years including a grace period of 05 years, was approved by the Cabinet.