Sri Lanka to get more concessionary funds: ADB

Sept 16, 2008 (LBO) – Sri Lanka would get more than 200 million US dollars a year from the Asian Development Bank (ADB) over the next three years and the country would get more money from its concessionary window, an official said. The ADB's country partnership strategy, which outlines its lending program for the island is expected to be approved by the lenders' board next month, country chief Richard Vokes said.

ADB is hoping to lend between 210 to 220 million US dollars a year to Sri Lanka, but also bring in other donors and private partners to increase the total project value.

Vokes said under the new country strategy, Sri Lanka would get more money from its concessionary Asian Development Fund (ADF), which has been recently replenished by its promoting donor nations by 11 billion dollars.

ADF funds come at a super cheap 1.5 percent a year rate with a 32-year repayment period and 8-year grace during which 1.0 percent interest is charged.

Vokes said Sri Lanka is likely to get about 90 million US dollars a year in ADF money compared to about 60 million dollars in the past few years.

The rest of the money would come from the less concessional Ordinary Capital Resources (OCR) window, which has shorter repay