The Cabinet of Ministers has approved entering into financing agreements with the Asian Development Bank (ADB) to secure $ 200 million for a sector development program aimed at strengthening access to finance for micro, small and medium-sized enterprises (MSMEs).
The financing comprises a $ 100 million policy-based loan from the ADB’s ordinary capital resources and a further $ 100 million through a financial intermediation loan component.
Addressing the weekly post-Caninet meeting media briefing yesterday, Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said the approval follows the Cabinet decision of 16 March 2026 to conduct loan negotiations with the ADB for a broader $ 620 million policy-based financing package structured under five sub-programs. The package is intended to support Sri Lanka’s reform agenda alongside the International Monetary Fund’s (IMF) program.
He noted that discussions were held to secure the $ 200 million loan under two distinct repayment frameworks. ‘The $ 100 million policy-based component carries a 12-year repayment period with a three-year grace period. The remaining $ 100 million financial intermediation component has a 15-year repayment period alongside a five-year grace,’ he added.
Following that approval, Dr. Jayatissa said the Department of External Resources has concluded formal financing discussions with the ADB on the first sub program, titled the ‘Sector Development Program for Developing a Strong and All-Inclusive Financial Ecosystem for Micro, Small and Medium-sized Enterprises’.
He said the latest Cabinet approval authorises the Government to enter into the relevant financing agreements with the ADB to implement the program.
The proposal to this effect was submitted by President Anura Kumara Dissanayake in his capacity as the Finance, Planning and Development Minister.