Govt. welcomes $ 165 m ADB support to boost COVID-hit SMEs

Finance Ministry Secretary S.R. Attygalle (right) and ADB Resident Mission Country Director Chen Chen signing the $ 165 million loan yesterday to support COVID-hit small and medium enterprises in Sri Lanka

The Government yesterday welcomed $ 165 million support to COVID-hit small and medium enterprises in Sri Lanka from the Asian Development Bank (ADB).

“The government highly appreciates ADB’s long-term commitment to supporting Sri Lanka’s development. SMEs will be essential to recovery from COVID-19. 

The new loan from ADB will help the government’s efforts of supporting SMEs in and after the COVID-19 pandemic,” said Finance Ministry Secretary S.R. Attygalle.

“We are glad to be of assistance to the SME sector at this crucial juncture when the sector has suffered a severe setback due to the COVID-19 pandemic,” said ADB Resident Mission Country Director Chen Chen. “We trust that this assistance will help SMEs revive their businesses and contribute once again significantly to the Sri Lankan economy.”

The new financing will build on the ongoing Small and Medium-Sized Enterprises Line of Credit Project, which ADB approved in 2016 to strengthen SMEs’ access to finance. The new loan will introduce a new credit line, co-financed with a $ 1.25 million grant from the Japan Fund for Poverty Reduction (JFPR), to promote capital investment by tea smallholders.

A supplemental $ 1.75 million technical assistance grant from JFPR will build tea smallholders’ financial literacy and capacity to access financial services and develop policies to promote value chain development for the Sri Lankan tea industry to strengthen its international competitiveness. 

ADB approved a $ 20 billion expanded assistance package in April to support its developing members’ COVID-19 response. 

The ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members – 49 from the region.