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Linkage to Country/Regional Strategy |
The proposed project is directly aligned with the government's development policy framework, which aims to accelerate economic growth, improve access to finance, address inadequate and poor quality of infrastructure as a major constraint to rapid economic growth, and increase the low level of private sector investment. ADB's 2012 to 2016 country partnership strategy for Sri Lanka is built on the government's development policy framework and Strategy 2020, and calls for ADB support for private sector development, including projects that accelerate the pace of private sector participation and promote financial sector development. The project also supports inclusive and sustainable economic growth as outlined in the country partnership strategy, as the project will contribute to these objectives through infrastructure development. It is also consistent with ADB's country operations business plan to catalyze private investment and promote inclusive growth in Sri Lanka and to support financial sector development through ADB's Private Sector Operations Department. ADB has supported the private finance sector since the conflict. It provided a $15 million senior loan to DFCC Vardhana Bank in 2012 to support housing finance and a $15 million senior loan to Nations Trust Bank in 2013 to support SME finance in Sri Lanka. Eight Sri Lankan banks are active in ADB's Trade Finance Program. |
