Sri Lanka: Rural Finance Sector Development (Project Loan)

Project Name Rural Finance Sector Development (Project Loan)
Project Number 34320-013
Country / Economy Sri Lanka
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2040-SRI: Rural Finance Sector Development (Program Loan)
Ordinary capital resources US$ 50.00 million
Loan 2041-SRI: Rural Finance Sector Development (Project Loan)
Ordinary capital resources US$ 10.00 million
Loan 2042-SRI: Rural Finance Sector Development
Asian Development Fund US$ 10.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Sector / Subsector

Finance / Banking systems and nonbank financial institutions - Finance sector development - Inclusive finance

Gender Gender equity
Description The project loan objective is to strengthen key sector institutions for providing training in Rural Finance (RF), efficient service delivery, sector supervision, and outreach expansion. These will increase the access of rural households to adequate and demand adpated RF services.
Project Rationale and Linkage to Country/Regional Strategy

TBD

The poverty partnership agreement between the Government and ADB emphasizes on employment generation, pro-poor asset creation, promotion of RF intermediation, and a larger role of the private sector for sustainable growth. ADB?s country strategy for Sri Lanka underlines the need for a suitable regulatory framework for rural finance institutions (RFIs) and greater access to rural finance through RFIs, including microfinance NGOs. The Project will support rural micro and small enterprises for income expansion and employment generation.

Impact Reduce poverty level and facilitate economic growth in rural Sri Lanka
Project Outcome
Description of Outcome Establish a sustainable RF system through policy, legal, regulatory, and institutional reforms
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Conducive Policies for RF development

Legal framework for supervising RFIs

Facilitating the recovery of dues from RFI defaulters

Cooperative Rural Bank (CRB) Reforms

Regional Development Banks (RDB) Reforms

National Development Trust Fund (NDTF) Reform

Samurdhi Banking Societies (SBS reforms)

Redefining Rural Economy Resuscitation fund (RERF)

Expansion of RF services in the conflict-affected areas

Development of RF related training capacity of Center for Banking Studies

Rural enterprise development

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement
Indigenous Peoples
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design TBD
During Project Implementation TBD
Business Opportunities
Consulting Services A total of 58 person-months of international and 628 person-months of domestic consulting services will be financed by the ADF project loan. Consulting services will support building sector capacity (82 person-months); RFI restructuring (307 person-months); developing financial infrastucture (120 person-months); and project implementation support (177 person-months). The consultants will be recruited in accordance with ADB's Guidelines on the Use of Consultants and arrangements for the engagement of domestic consultants satisfactory to ADB. Quality and cost-based selection (QCBS) method and simplified procedures will be used for consultant selection. Consultants will be recruited by MPDI on behalf of all IAs.
Procurement Procurement of Goods and services will be in accordance with ADB's Guidelines for Procurement. Expenditure procedures will be in accordance with ADB's Loan Disbursement Handbook.
Responsible ADB Officer Bertsch, Natalie D.
Responsible ADB Department South Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SARD
Executing Agencies
Ministry of Finance and Planning
Ms. Melanie Gamage
[email protected]
P.O. Box 277
The Secretariat Building, Colombo 1
Sri Lanka
Timetable
Concept Clearance 01 Mar 2000
Fact Finding 17 Mar 2003 to 11 Apr 2003
MRM 05 Jun 2003
Approval 11 Dec 2003
Last Review Mission -
PDS Creation Date 17 Oct 2006
Last PDS Update 26 May 2011

Loan 2040-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Dec 2003 21 Jan 2004 12 May 2004 30 Jun 2008 - 30 Jun 2008
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 50.00 Cumulative Contract Awards
ADB 50.00 17 Jun 2022 35.25 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 17 Jun 2022 35.25 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory - Satisfactory - Satisfactory

Loan 2041-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Dec 2003 21 Jan 2004 12 May 2004 30 Jun 2008 - 30 Jan 2009
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 10.00 Cumulative Contract Awards
ADB 10.00 17 Jun 2022 8.37 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 17 Jun 2022 8.37 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory - Satisfactory - Satisfactory

Loan 2042-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Dec 2003 21 Jan 2004 12 May 2004 30 Jun 2008 - 14 Feb 2012
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 10.00 Cumulative Contract Awards
ADB 10.00 17 Jun 2022 5.58 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 17 Jun 2022 5.58 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory - Satisfactory - Satisfactory

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Source URL: https://www.adb.org/projects/34320-013/main