The Asian Development Bank (ADB) has approved Sri Lanka’s eligibility for concessional financing.
The availability of concessional aid, offered at low interest rates, expands Sri Lanka’s options for meeting its urgent development financing needs to restore economic stability and deliver essential services, particularly to the poor and vulnerable.
Eligibility for concessional resources among ADB developing country members is based on gross national income per capita and creditworthiness.
The ADB’s decision was considered on the basis of a request from the Sri Lankan Government in view of the unprecedented severe economic crisis that has reversed hard-won development gains.
ADB records $11.4 billion in co-financing, focused on resilience to economic crises
“ADB is committed to further strengthening its support for the people of Sri Lanka as the country responds to this deep crisis that has severely undermined their livelihoods and well-being,” said Kenichi Yokoyama, AsDB Director General for South Asia.
“The availability of concessional assistance will help Sri Lanka lay the foundation for economic recovery and sustained and inclusive growth.”
Sri Lanka is now eligible for ADB assistance, which includes concessional and market financing, technical assistance, policy advice and knowledge-based solutions that together make up a wide range of options for dealing with the crisis.
Access to concessional finance will also ease debt service pressures through more favorable lending terms.
