“The country is exploring the possibility of obtaining assistance to the value of USD 6-7 billion from all the multilateral agencies, the ADB, World Bank, AIIB, within the next four-year period,” Minister of Foreign Affairs Ali Sabry told Sunday Observer Business on the sidelines of the ADB’s 56th Annual Sessions in Incheon, Republic of Korea.
Minister Ali Sabry also met Indian Finance Minister Nirmala Sitharaman in Korea and discussed the strengthening of bilateral relations and economic partnerships.
“If we offset the foreign currency crunch by 2027 we will come back to normal and will be able to support ourselves, so in between this particular period our idea is to get about USD 17 billion in debt relief and the balance USD 6-7 billion through these multilateral agencies such as IMF, ADB, WB and the AIIB,” he said
Meanwhile the Asian Development Bank has committed about USD 2 billion for Sri Lanka in the next four years and depending on the progress the country makes they may even increase that, the Minister said.
He said the ADB has committed USD 650 million for 2023 of which USD 350 million will be a special policy based loan, USD 200 million for financial sector stability and USD 100 million for renewable energy
Sabry said traditionally the ADB has been a strong friend and has been supportive of Sri Lanka and the discussions with them went very well and ADB President Masatsugu Asakawa was very happy over the progress the country had made particularly in the area of controlling inflation.
He said the ADB is very pleased with the progress so far particularly over the difficult decisions taken by the Government particularly negotiating with the IMF and entering into an EFF with them and also the measures taken by the Government such as cost reflective pricing, controlling of inflation and also managing the rupee from further depreciating.
He said the ADB had asked as to what areas the country needs support and they talked about technical support in agriculture, digitalisation, renewable energy and financial sector stability support for banks if necessary.