|
Project Rationale and Linkage to Country/Regional Strategy |
The development of the SME sector is critical for Sri Lanka's economic growth and poverty reduction because, as of 2013, the SME sector contributes about 30% to GDP, and represents 80% of businesses. Among the many challenges faced by SMEs, the development literature identifies access to finance as one of the main constraints.
The project supports:
i. Sri Lanka's development strategy included in President Sirisena's election manifesto and the government's budget speech, which has a strong emphasis on inclusive economic growth and private sector development; and
ii. ADB's Country Partnership Strategy, which focuses ADB assistance on private sector development, including projects that accelerate the pace of private sector participation and promote financial sector development.
|
