Cabinet Approves $ 200 Mn ADB Loan for MSME Sector 📈

• Overall Funding: The Cabinet approved entering into financing agreements with the Asian Development Bank (ADB) for a $ 200 Mn package dedicated to strengthening access to finance for Micro, Small and Medium-sized Enterprises (MSMEs). • Loan Structure: • $ 100 Mn policy-based loan (ADB ordinary capital resources): 12-year repayment period with a 3-year grace period. • $ 100 Mn financial intermediation loan: 15-year repayment period with a 5-year grace period. • Strategic Alignment: Forms part of a broader $ 620 Mn ADB policy-based financing package (across 5 sub-programs) designed to support national economic reform alongside the IMF program. • Implementation: Follows concluded negotiations by the Department of External Resources for the 'Sector Development Program for Developing a Strong and All-Inclusive Financial Ecosystem for MSMEs'. Submitted by President Anura Kumara Dissanayake as Finance Minister.