Sri Lanka: Mobilizing Finance for Sri Lanka

Sovereign Project | 49426-001

The CDTA will study how to catalyze venture capital funding for Sri Lankan SMEs and how to mobilize offshore debt financing for tea producers.

Project Details

  • Project Officer
    Donald Lambert
    South Asia Department
    Request for information
  • Country/Economy
    Sri Lanka
  • Modality
    • Technical Assistance
  • Sector
    • Finance
Project Name Mobilizing Finance for Sri Lanka
Project Number 49426-001
Country / Economy Sri Lanka
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9102-SRI: Mobilizing Finance for Sri Lanka
Financial Sector Development Partnership Special Fund US$ 500,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Finance / Finance sector development
Gender Equity and Mainstreaming No gender elements
Description The CDTA will study how to catalyze venture capital funding for Sri Lankan SMEs and how to mobilize offshore debt financing for tea producers.
Project Rationale and Linkage to Country/Regional Strategy The TA is aligned with ADB's Interim CPS for Sri Lanka 2015-2016, which includes _Catalyzing Private Investment and Enhancing the Effectiveness of Public Investment_ as one of its three pillars. The intended bond issuances provide an alternate source of financing that can be replicated by other issuers.
Impact Foreign investment and investment by individuals increased
Project Outcome
Description of Outcome Ability of RPCs and SMEs to access private investment from capital markets strengthened
Progress Toward Outcome A capital expenditure financing project to modernize and improve the productivity of the tea sector, benefitting stakeholders including tea smallholders and RPCs, is expected to be processed in 2019.
Implementation Progress
Description of Project Outputs

Study on the feasibility of tea bonds completed

Due diligence for the operationalization of an SME venture capital fund to increase SMEs' access to equity capital undertaken

Knowledge building activities undertaken
Status of Implementation Progress (Outputs, Activities, and Issues)

A report and seminar on structuring government support for venture capital to SMEs was completed in 2017.

A seminar on developing a financing strategy for the tea sector was held on 4 September 2018. A report is expected by end-September 2018.
Geographical Location Nation-wide
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation Seminars were held in 2017 and in September 2018 for both parts of the TA. A final report was completed on structuring government support for venture capital and a report on mobilizing finance for the tea sector is expected by end-September 2018.
Business Opportunities
Consulting Services The TA will require 9 person-months of international consulting services and 9 person-months of national consulting services. A consulting firm will be engaged by ADB in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). Due to the highly specialized expertise needed, an international consulting firm in association with national consultants will be selected and engaged by ADB using the quality- and cost-based selection method with a quality cost weighting of 90:10. An output-based (lump-sum) contract will be used. The outline terms of reference for the consultants are in Appendix 3. All the disbursements under the TA will be made in accordance with ADB's Technical Assistance Disbursement Handbook (2010, as amended from time to time). Procurement will be carried out in accordance with ADB's Procurement Guidelines (2015, as amended from time to time).
Procurement None envisaged at this stage.
Responsible ADB Officer Donald Lambert
Responsible ADB Department South Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SARD
Executing Agencies
Department of Development Finance
1st Floor, The Secretariat, Colombo 01,
Sri Lanka
Ministry of Plantation
11th Floor, Sethsiripaya, 2nd Stage, Battaramulla
Sri Lanka
Timetable
Concept Clearance 02 Feb 2016
Fact Finding -
MRM -
Approval 22 Apr 2016
Last Review Mission -
Last PDS Update 10 Sep 2018

TA 9102-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
22 Apr 2016 31 May 2016 31 May 2016 31 Mar 2017 30 Sep 2018 18 Oct 2018
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
500,000.00 0.00 10,000.00 0.00 0.00 0.00 510,000.00 17 Jun 2022 423,594.10

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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.

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Tenders

No tenders for this project were found.

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Capacity Development Technical Assistance 9102 11 Oct 2016 York Street Partners (Pvt) Ltd. (Sri Lanka) in Association with D. Capital Partners Limited (United Kingdom) | 116 HAVELOCK ROAD COLOMBO 05, CENTRAL PROVINCE SRI LANKA Ministry of Plantation Industries (MPI) 454,696.00 —

Procurement Plan

None currently available.