Asian Development Bank (ADB) has agreed to provide a Special Policy Based Loan (SPBL) of USD 350 million, for Sri Lanka’s economic stabilization and strengthening governance. The program is aligned with the government plans of economic reforms and recovery. The loan of USD 350 million will be provided from ADB’s Ordinary Capital Resources.
The SPBL will complement the international economic rescue package led by the IMF for Sri Lanka, in the wake of the ongoing debt and balance-of-payment crisis. The proposed policy measures of the Economic Stabilization Program will contribute towards economic stability, improving fiscal and debt sustainability, and strengthening the banking system of the country−all of which are structural corrections that the local economy urgently requires in order to create better economic opportunities for the citizens of Sri Lanka, reduce poverty and induce growth in income.
The relevant Loan Agreement for the SPBL for Economic Stabilization Program was signed by Mr. K M Mahinda Siriwardana, Secretary, Ministry of Finance, Economic Stabilization and National Policies and Mr. Utsav Kumar, Deputy Country Director, ADB Resident Mission, on the 29th May 2023 on behalf of the Government of Sri Lanka and ADB respectively.