Sri Lanka gets $150mn ADB emergency loan
Apr 15, 2010 (LBO) – The Asian Development Bank (ADB) said it is providing 150 million US dollars in an emergency loan to
Sri Lanka for projects to help people in the war-ravaged north and east.
The loan will have a 32-year repayment term, including a grace period of eight years and an annual interest rate based on
ADB’s London interbank offer rate-based lending facility, the bank said in a statement.
The government of Sri Lanka will provide 18.24 million dollars for the project which will support reconstruction of urgentlyneeded
infrastructure, restore essential services and revive livelihood opportunities for people in war-affected regions.
“ADB’s assistance will expand and strengthen the reconstruction of urgently needed essential economic and social infrastructure
and administrative services, and create livelihood and sustainable employment opportunities,” said Richard Vokes, Country
Director of ADB’s Sri Lanka Resident Mission.
The projects, expected to be completed by 2013, will complement ADB’s ongoing development work in areas affected by the
30-year ethnic war which ended last May.
The ADB is contributing to efforts to rehabilitate refugee communities in the north and east through projects such as repairing
damaged schools, hospitals and roads, and providing tractors to farmers’ cooperatives and livelihood grants to refugee families.
The loan is part of the wider assistance being extended by ADB and other development agencies to support resettlement and
rehabilitation of thousands of refugees, particularly in the Northern Province, and also in areas in the Eastern Province and
North Central Province affected by war.
Licensed Banks taking steps to open branches in the Northern and Eastern provinces
Several licensed banks are showing keen interest to facilitate economic activities in the Northern and Eastern provinces. Accordingly,
Commercial Bank of Ceylon PLC, Hatton National Bank PLC, National Savings Bank, People’s Bank, Sampath
Bank PLC and Seylan Bank PLC are taking the necessary steps to open branches in Akkareipattu, Atchhuweli, Kalawanchikudy,
Kilinochchi, Mallavi, Manipai, Mankulam, Mannar, Paranthan, Thunukkai and Valachchinei over the next few months.
Necessary approvals for this purpose have been granted by the Central Bank.
Licensed banks currently operating in the Northern and Eastern provinces have also committed to grant new credit facilities
amounting to Rs, 56 billion in 2010 and Rs. 70 billion in 2011 in these two provinces.
Iran to buy more Sri Lankan tea: government
April 14, 2010 (AFP) – Iran plans nearly to double its purchase of Sri Lankan tea, the island’s main export commodity, Sri
Lanka’s government said Wednesday, announcing a move that could boost tea prices.
Iran wants to buy 50 million kilos (110 million pounds) of tea this year, up from 28 million kilos in 2009, the government said
in a statement.
Colombo said Tehran was ready to boost its purchases from Sri Lanka after the island became “politically stable” following the
end of 37 years of fighting with Tamil Tiger rebels last year.
Sri Lanka earned an estimated 1.3 billion US dollars from exporting 289 million kilos of tea in 2009.
Iran accounted for nearly 10 percent of Sri Lanka’s tea sales in 2009.