Asian Development Bank approves a $200M loan to debt-stricken Sri Lanka

By BHARATHA MALLAWARACHI
Associated Press

COLOMBO, Sri Lanka (AP) — The Asian Development Bank says it approved $200-million concessional loan to debt-stricken Sri Lanka to help stabilize the country’s finance sector. An unprecedented economic crisis engulfed the Indian Ocean island nation last year. Sri Lanka is awaiting International Monetary Fund approval for a second installment from a $2.9-billion bailout package to rescue the country from bankruptcy. The Asian Development bank said Friday that its loan would help strengthen the stability and governance of Sri Lanka’s banking sector, and deepen sustainable and inclusive finance, particularly for women-led micro, small, and medium-sized enterprises. Sri Lanka declared bankruptcy in April 2022 with more than $83 billion in debt, more than half of it owed to foreign creditors.