ADB to loan USD 19 m for private sector

by Shirajiv Sirimane

The Asian Development Bank (ADB) will provide USD 19 million to develop private sector enterprises.

This pledge was made by Finance and Training Division representative ADB, Babara Ericcson, at the international conference on ?Achieving results in private sector development?, concluded in Manila last week.

According to an official of the Finance Ministry, Senior Specialist Regional and Sustainable Development ADB, Karen Decker is expected to visit Sri Lanka early May to expedite the release of this fund. ?She is expected to pledge further support for the SME sector,? he said. The US dollar 19 million would be released through commercial banks on a very low interest rate with a long pay back time.

President Federation of Chamber of Commerce and Industry (FCCISL) Navaz Rajabdeen who attended the event said that the ADB is keen to develop the power and energy sector of the country.

The ADB is planning to divert some of these funds to provide financial assistance to construct mini hydropower projects.

The ADB has also promised to provide advanced overseas training for Sri Lankan small and medium entrepreneurs. ?They were very keen to provide training for the Gem and Jewellery sector, handicraft and the carpentry industry,? he said.

The FCCISL would select two entrepreneurs each from these three sectors and send them for advanced training in Italy for short period. Secretary to the Ministry of Finance Dr. P. B. Jayasundera also attended the event and made a presentation of the Sri Lanka situation.

The conference organised by the ADB was a part of a regional technical assistance project, which aimed to prepare a good practices reference guide for policy-makers for taking a strategic approach to private sector development (PSD) in support of economic growth and poverty reduction.