The Government on Friday entered into a loan agreement with the Asian Development Bank to obtain a loan of $ 250 m from the Ordinary Capital Resources Fund of the Asian Development Bank to implement the Capital Market Development Program in Sri Lanka.
The main objective of the CMDP is to ensure that the capital markets in Sri Lanka are more effective in mobilising resources for the economy’s financing requirements to better promote growth and development. Under the CMDP it is desired to develop efficient, stable and transparent capital markets that are a highly proficient conduit for resource mobilisation and that are grounded in a strong legal and regulatory framework. Increasing the capacity and size of the capital market through enhanced market facilitation, demand measures and supply measures are also identified as objectives of CMDP.
The proposed loan of $ 250 m will be disbursed in two tranches of approximately $ 125 m each, based on the accomplishment of the policy actions relevant for each of the tranches. The Ministry of Finance will be the Executing Agency of the Program whereas Central Bank of Sri Lanka, Securities and Exchange Commission (SEC), Sri Lanka Insurance Board (IBSL) and Sri Lanka Accounting and Auditing Standards Monitoring Board (SLAASMB) will be the implementing agencies.
In this connection, Secretary to the Ministry of Finance 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 24 November 2016 at the Ministry of Finance.