ADB grants Sri Lanka a loan of $200 million

INN/Colambo, @infodeaofficial

A $200 million policy-based loan has been authorised by the Asian Development Bank (ADB) to help Sri Lanka fortify its financial industry. This is the second subprogram under the ADB’s Financial Sector Stability and Reforms Program, which aims to handle the financial crisis that began last year and stabilise the nation’s economy.

According to a statement from ADB, the program’s goal is to create long-term growth by implementing structural changes in the financial system with an emphasis on resilience, sustainable recovery, and poverty reduction. The bank praised Sri Lanka’s efforts to strengthen its fiscal framework and stabilise macroeconomic conditions.

One of the program’s main changes is the Central Bank of Sri Lanka’s increased regulatory supervision. Special loans and incentive packages will be introduced to promote micro, small, and medium-sized businesses, especially those managed by women. The digitalisation of personal data will improve electronic transactions and support financial inclusion.