Sri Lanka’s cabinet of ministers had authorized the Secretary to the Treasury to negotiate a 350 million US dollar loan from the Asian Development Bank, Transport Minister Bandula Gunawardana said.
The ADB loan is linked to a 3.0 billion US dollar International Monetary Fund program. According to the IMF program at least 650 million Us dollars is expected from the ADB in 2023 for budget support.
“It is not only the money from the IMF that comes from the program, there are also other funds,” Minister Gunawardana said.
The loan is to provide economic stability and governance, the statement said.
A 1.5 million dollar technical assistance grant will also be provided. ADB is also supporting Sri Lanka’s power sector reforms and banking sector stability.
Separately, the cabinet also approved taking the next steps to get a 150 million loan from the World Bank to bolster stability in the banking system.