ADB grants $150m loan to Sri Lanka
MANILA, PHILIPPINES - The Asian Development Bank (ADB) is providing
$150 million in emergency loan to the Government of Sri Lanka for
projects which will support reconstruction of urgently-needed
infrastructure, restore essential services and revive livelihood
opportunities for people in war-affected regions.
The loan is part of the wider assistance being extended by ADB and
other development partners to support resettlement and rehabilitation of
thousands of internally displaced persons (IDPs), particularly in the
war-ravaged Northern Province, and also in areas in the Eastern Province
and North Central Province which have been affected by the conflict.
For nearly three decades, Sri Lanka was torn by internal armed
conflict, with infrastructure destroyed, access to basic social services
disrupted, and livelihood of people severely affected. Following the end
of the conflict in May 2009, the Government has begun undertaking the
difficult process of resettling some 277,000 IDPs.
According to latest government estimates, about 80,000 IDPs are still
to be resettled in their original places of residence.
ADB has participated in three fact-finding missions to the
conflict-affected areas and also held extensive discussions with
government officials at various levels to determine the nature and
extent of assistance that could be provided to IDPs.
"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 in the war-affected area," said Richard Vokes,
Country Director of ADB's Sri Lanka Resident Mission.
The sub-projects, which are expected to be completed by 2013, will
complement ADB's ongoing development work in the conflict-affected areas
for the last several years.
ADB is currently contributing to efforts to rehabilitate IDP
communities in the northern and eastern parts of the country through a
range of projects such as repairing damaged schools, hospitals and
roads, and providing tractors to farmers' cooperatives and livelihood
grants to IDP families.
The emergency loan will be sourced from ADB's ordinary capital
resources. It will have a 32-year term, including a grace period of 8
years and an annual interest rate based on ADB's London interbank offer
rate-based lending facility. The government of Sri Lanka will provide
$18.24 million for the project.
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