ADB to provide USD 2 billion for Sri Lanka's recovery

The Asian Development Bank today said that it will provide over USD 2 billion of loans and equity to Sri Lanka this year which would be used to finance expressways, railways, power generation and education.
"The ADB is re-orienting its operations to meet the evolving needs of Sri Lanka as it moves to become an upper- middle-income country in the next few years," ADB President Takehiko Nakao said after talks with President Maithripala Sirisena and other leaders today.
He said the ADB will help in Sri Lanka's education sector in building a knowledge based economy.
The ADB has called for prudent macro-economic management in order to maintain 6 per cent or above growth during 2016 and 2017.

He urged better tax collection and prudent spending.
"Both tax revenue enhancement and effective management of public expenditure are urgent tasks for the government," he said.

The Central Bank of Sri Lanka on Friday raised its lending rate from 7.5 to 8.0 per cent ahead of a possible IMF bailout. The previous rate increase was in April 2012 when it was increased by 75 basis points to 9.75 per cent.
The IMF, which sent a mission to review Lanka's economy earlier this month, said it had warned the authorities they should make a "stronger effort" to immediately reduce the budget deficit.

Sri Lanka sought an IMF bailout immediately after the new government took office in January last year but the financial body turned down the request, saying the country's reserves were at a comfortable level.