Govt provides sovereign guarantee to RDB Bank to obtain USD 50mn loan from ADB

ADB-loan-for-RDB-bank

Jun 15, 2019 (LBO) – Government has facilitated the Pradeshiya Sanwardana Bank, by providing a sovereign guarantee, to obtain a loan amounting to 50 million US dollars from the ADB which is operating islandwide providing financial and advisory services to Micro, small and medium enterprises.

The Finance Ministry said the project will increase employment opportunities in micro, small and medium enterprises.

Accordingly, the RDB’s capacity to serve its micro, small and medium enterprise clients will be strengthened by expanding RDB operations, strengthening RDB’s operational capacity and enhancing the capacities of micro, small and medium enterprises to access financial services.

In this connection, Dr. R H S Samarathunga, Secretary to the Ministry of Finance on behalf of the Government of Sri Lanka and Sri Widowati, Country Director of ADB Sri Lanka Resident Mission on behalf of ADB, signed the Guarantee Agreement on 14 June 2019 at the Finance Ministry.

RDB Chairman Sujith Prasanna Kariyawasam and General Manager Thetchanamurthy Kuhan on behalf of the Regional Development Bank and Sri Widowati, Country Director of ADB Sri Lanka Resident Mission, signed the Loan Agreement to obtain the loan at the Finance Ministry.

The Government’s vision 2025 – A Country Enriched policy document has identified the importance of enhancing the access to finance for the micro, small and medium enterprises.

Accordingly, the Government launched the “Enterprise Sri Lanka” Loan Schemes on an Island-wide basis in 2018, to create an entrepreneurial society, particularly amongst our youth, by providing access to capital at concessionary interest rates.