49273-002: Small and Medium-Sized Enterprises Line of Credit Project-Additional Financing | Asian Development Bank

Sri Lanka: Small and Medium-Sized Enterprises Line of Credit Project-Additional Financing

Sovereign (Public) Project | 49273-002 Status: Active

Financial inclusion of small and medium-sized enterprises (SMEs) in Sri Lanka remains a key development priority for the government given SMEs' large demand for credit, the financial barriers facing SMEs, and SMEs'' potential for reducing unemployment and regional inequalities. This additional financing will provide loans to Sri Lankan banks to encourage them to grow their SME portfolios; and will extend the current successful project, which otherwise would close ahead of schedule, through March 2020.

Project Details

Project Officer
Lambert, Donald J. South Asia Department Request for information
Country
  • Sri Lanka
Sector
  • Finance
 
Project Name Small and Medium-Sized Enterprises Line of Credit Project-Additional Financing
Project Number 49273-002
Country Sri Lanka
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3640-SRI: Small and Medium-Sized Enterprises Line of Credit Project-Additional Financing
Ordinary capital resources US$ 75.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Finance / Small and medium enterprise finance and leasing

Gender Equity and Mainstreaming Effective gender mainstreaming
Description Financial inclusion of small and medium-sized enterprises (SMEs) in Sri Lanka remains a key development priority for the government given SMEs' large demand for credit, the financial barriers facing SMEs, and SMEs'' potential for reducing unemployment and regional inequalities. This additional financing will provide loans to Sri Lankan banks to encourage them to grow their SME portfolios; and will extend the current successful project, which otherwise would close ahead of schedule, through March 2020.
Project Rationale and Linkage to Country/Regional Strategy A vibrant SME sector has the potential to mitigate several of Sri Lanka's most difficult development challenges. SMEs have higher growth potential, can create jobs, and, over time, increase the tax base at a quicker pace than larger enterprises. They can also reduce regional inequalities. While all firms in Standard & Poor's Sri Lanka 20, the main national stock market index, are headquartered in Colombo, SMEs are spread throughout the country. For women, whose participation in the Sri Lankan workforce lags that of international peers, and for youths, whose unemployment rate exceeds the national average, start-up businesses offer an opportunity to participate meaningfully in the economy. A more vibrant SME sector could also increase exports and attract foreign direct investment.
Impact Employment opportunities in SMEs increased (Vision 2025)
Project Outcome
Description of Outcome SMEs' access to finance strengthened
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Financing to SMEs through formal intermediaries increased

Innovative SME financing schemes developed

Capacity of SMEs in targeted clusters to access financial services enhanced

International competitiveness of the ICT BPO cluster strengthened

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Safeguard Categories
Environment FI
Involuntary Resettlement FI-C
Indigenous Peoples FI-C
Summary of Environmental and Social Aspects
Environmental Aspects Minimal or no adverse environmental impact.
Involuntary Resettlement Not applicable.
Indigenous Peoples Not applicable.
Stakeholder Communication, Participation, and Consultation
During Project Design There were multiple consultations organized by the Ministry of Finance that gave participating financial institutions the opportunity to contribute to the project's original design.
During Project Implementation ADB will communicate information about this project and the outcome of this project through its publications, presentations, and on its website. ADB will also communicate with the project s internal stakeholders through written documents.
Business Opportunities
Consulting Services Not applicable.
Procurement Procurement under ADB-financed subloans will be in accordance with ADB's Procurement Guidelines (2015, as amended from time to time) as they relate to financial intermediary loans. Subborrowers will be required to undertake procurement in accordance with established private sector or commercial practices that are acceptable to ADB (paragraph 3.12 of the ADB Procurement Guidelines).
Responsible ADB Officer Lambert, Donald J.
Responsible ADB Department South Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SARD
Executing Agencies
Ministry of Finance and Mass Media
The Secretariat Building
Colombo 01
Sri Lanka
Timetable
Concept Clearance -
Fact Finding 15 Aug 2017 to 17 Aug 2017
MRM 02 Oct 2017
Approval 15 Jan 2018
Last Review Mission -
Last PDS Update 17 Jan 2018

Loan 3640-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Jan 2018 16 Feb 2018 16 Apr 2018 30 Sep 2020 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 75.00 Cumulative Contract Awards
ADB 75.00 15 Jan 2018 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 15 Jan 2018 25.00 0.00 33%

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Small and Medium-Sized Enterprises Line of Credit Project - Additional Financing: Executing Agency Monthly Progress Report (August 2018) Executing Agency Progress Reports Aug 2018
Small and Medium-Sized Enterprises Line of Credit Project - Additional Financing: Executing Agency Monthly Progress Report (July 2018) Executing Agency Progress Reports Jul 2018
Small and Medium-Sized Enterprises Line of Credit Project: Executing Agency Progress Report Executing Agency Progress Reports Jun 2018
Project Agreement for Loan 3640-SRI: Small and Medium-Sized Enterprises Line of Credit Project-Additional Financing (Bank of Ceylon) Project/Program Agreements Mar 2018
Project Agreement for Loan 3640-SRI: Small and Medium-Sized Enterprises Line of Credit Project-Additional Financing (Pradeshiya Sanwardana Bank) Project/Program Agreements Mar 2018
Project Agreement for Loan 3640-SRI: Small and Medium-Sized Enterprises Line of Credit Project-Additional Financing (Hatton National Bank PLC) Project/Program Agreements Feb 2018
Project Agreement for Loan 3640-SRI: Small and Medium-Sized Enterprises Line of Credit Project-Additional Financing (Commercial Bank of Ceylon PLC) Project/Program Agreements Feb 2018
Project Agreement for Loan 3640-SRI: Small and Medium-Sized Enterprises Line of Credit Project-Additional Financing (Seylan Bank PLC) Project/Program Agreements Feb 2018
Project Agreement for Loan 3640-SRI: Small and Medium-Sized Enterprises Line of Credit Project-Additional Financing (Nations Trust Bank PLC) Project/Program Agreements Feb 2018
Project Agreement for Loan 3640-SRI: Small and Medium-Sized Enterprises Line of Credit Project-Additional Financing (National Development Bank PLC) Project/Program Agreements Feb 2018
Project Agreement for Loan 3640-SRI: Small and Medium-Sized Enterprises Line of Credit Project-Additional Financing (Sampath Bank PLC) Project/Program Agreements Feb 2018
Project Agreement for Loan 3640-SRI: Small and Medium-Sized Enterprises Line of Credit Project-Additional Financing (DFCC Bank PLC) Project/Program Agreements Feb 2018
Project Agreement for Loan 3640-SRI: Small and Medium-Sized Enterprises Line of Credit Project-Additional Financing (People's Bank) Project/Program Agreements Feb 2018
Loan Agreement (Ordinary Operations) for Loan 3640-SRI: Small and Medium-Sized Enterprises Line of Credit Project-Additional Financing Loan Agreement (Ordinary Resources) Feb 2018
Small and Medium-sized Enterprises Line of Credit Project - Additional Financing: Report and Recommendation of the President Reports and Recommendations of the President Dec 2017
Small and Medium-sized Enterprises Line of Credit Project - Additional Financing: Gender Action Plan Gender Action Plans Dec 2017
Small and Medium-sized Enterprises Line of Credit Project - Additional Financing: Project Administration Manual (As of Board Approval) Project/Program Administration Manual Nov 2017

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.