Asian Development Bank lends US $ 250mn for Sri Lanka’s capital market development
The Sri Lankan government has signed a loan agreement with the Asian Development Bank (ADB) to obtain a loan of US $ 250 million from the Ordinary Capital Resources Fund of ADB to implement the Capital Market Development Programme (CMDP) in Sri Lanka.
The main objective of the CMDP is to ensure that the capital market in Sri Lanka is more effective in mobilizing resources for the economy’s financing requirements to better promote growth and development.
Increasing the capacity and size of the capital market through enhanced market facilitation, demand measures and supply measures are also identified as objectives of the CMDP. The proposed loan of US $ 250 million will be disbursed in two tranches of approximately US $ 125 million each based on the accomplishment of the policy actions relevant for each of the tranches.
In this connection, Finance Ministry Secretary Dr. R.H.S. Samarathunga on behalf of the Government of Sri Lanka and ADB Sri Lanka Resident Mission Country Director Sri Widowati on behalf of ADB signed the loan agreement on November 24 at the Finance Ministry.