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Sri Lanka: Strengthening the Regional Development Bank Project

Sovereign (Public) Project | 52219-001 Status: Active

The project would provide long-term financing that would directly fund $50 million of subloans to micro and small enterprises outside of Colombo and be structured to provide the regulatory capital that would leverage an additional $533 million of lending.

Project Details

Project Officer
Gunawardhena, Manohari South Asia Department Request for information
Country
  • Sri Lanka
Sector
  • Finance
 
Project Name Strengthening the Regional Development Bank Project
Project Number 52219-001
Country Sri Lanka
Project Status Active
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 3774-SRI: Strengthening the Regional Development Bank Project
Ordinary capital resources US$ 50.00 million
TA 9711-SRI: Enhancing Rural Micro and Small-Sized Enterprises Finance
Japan Fund for Poverty Reduction US$ 1.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Finance / Small and medium enterprise finance and leasing

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The project would provide long-term financing that would directly fund $50 million of subloans to micro and small enterprises outside of Colombo and be structured to provide the regulatory capital that would leverage an additional $533 million of lending.
Project Rationale and Linkage to Country/Regional Strategy

The national development strategy of the Government of Sri Lanka targets achieving upper middle-income status with improved equity and protection of the vulnerable by 2025. Creating one million new jobs in the formal economy and increasing the labor force participation rate, mainly with micro, small, and medium-sized enterprises (MSMEs), are cornerstones of the strategy. MSMEs have higher growth potential, create more jobs, and, over time, increase the tax base at a quicker pace than larger enterprises. Because of their distribution across the whole country, they also contribute to reducing stubborn regional inequalities.

Access to finance is a key challenge for MSMEs, which face constraints to affordable financing both on the demand side, such as poor commercial viability and difficulty in meeting lending requirements of financial institutions, and on the supply side, such as financial institutions having operations poorly designed for MSMEs and an overreliance on collateral-based loans. As a result, only 30% of Sri Lankan firms have sufficient access to bank loans and other capital. Relative to its peer countries, this puts Sri Lanka last in South Asia and 31st among the 32 developing member countries of the Asian Development Bank. These constraints are even greater for MSMEs that are led by women or located in rural areas.

Impact MSME access to finance enhanced (Vision 2025)
Project Outcome
Description of Outcome RDB''s capacity to serve its client MSMEs strengthened
Progress Toward Outcome Ongoing implementation.
Implementation Progress
Description of Project Outputs

RDB''s operations expanded

RDB''s operational capacity strengthened

Capacity of MSEs to access financial services enhanced

Status of Implementation Progress (Outputs, Activities, and Issues)

1a. In Progress. TA consultants have completed the deposit mobilization report and submitted for Board approval on 6 August 2020. Board approval awaited.

1b. In Progress. $25 million was disbursed, out of which $13 million has been liquidated.

1c. In Progress.

2a. In progress. TA consultants have completed the strategy report and submitted for Board approval on 9 April 2020. Board approval awaited.

2b. In progress.

2c. Achieved. ESMS was approved by ADB and RDB board approved on 3 June 2020. Disclosed in ADB webpage.

2d. In progress. TA consultants have completed the asset-liability committee report and submitted for Board approval on 4 May 2020.

2e. In progress. TA consultants have completed the loan origination training program and submitted for Board approval on 26 October 2020.

3a. In progress. TA consulting firm has been recruited and working on the white paper.

3b. In progress. TA consulting firm is being recruited.

Geographical Location Nation-wide, Colombo
Safeguard Categories
Environment FI
Involuntary Resettlement FI-C
Indigenous Peoples FI-C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services not applicable
Procurement not applicable
Responsible ADB Officer Gunawardhena, Manohari
Responsible ADB Department South Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SARD
Executing Agencies
Regional Development Bank
933, Kandy Road, Wedamulla, Kelaniya,
Sri Lanka
Timetable
Concept Clearance 07 Sep 2018
Fact Finding 04 Sep 2018 to 07 Sep 2018
MRM 11 Oct 2018
Approval 14 Feb 2019
Last Review Mission -
Last PDS Update 14 Dec 2020

Loan 3774-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Feb 2019 14 Jun 2019 10 Oct 2019 30 Jun 2022 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 50.00 Cumulative Contract Awards
ADB 50.00 14 Feb 2019 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 14 Feb 2019 25.00 0.00 50%

TA 9711-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Feb 2019 09 Mar 2019 09 Mar 2019 28 Feb 2022 31 Mar 2022 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 1,000,000.00 0.00 0.00 0.00 0.00 1,000,000.00 14 Feb 2019 195,919.97

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 Access to Information Policy (AIP) 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
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (February 2021) Executing Agency Progress Reports Feb 2021
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (January 2021) Executing Agency Progress Reports Jan 2021
Strengthening the Regional Development Bank Project: Audited Project Financial Statements (For the year ended 31 December 2019) Audited Project Financial Statements Dec 2020
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (December 2020) Executing Agency Progress Reports Dec 2020
Strengthening the Regional Development Bank Project: Executing Agency Semestral Progress Report (July-December 2020) Executing Agency Progress Reports Dec 2020
Strengthening the Regional Development Bank Project: Updated Project Administration Manual Project/Program Administration Manual Dec 2020
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (November 2020) Executing Agency Progress Reports Nov 2020
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (October 2020) Executing Agency Progress Reports Oct 2020
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (September 2020) Executing Agency Progress Reports Sep 2020
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (August 2020) Executing Agency Progress Reports Aug 2020
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (July 2020) Executing Agency Progress Reports Jul 2020
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (June 2020) Executing Agency Progress Reports Jun 2020
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (May 2020) Executing Agency Progress Reports May 2020
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (April 2020) Executing Agency Progress Reports Apr 2020
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (March 2020) Executing Agency Progress Reports Mar 2020
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (February 2020) Executing Agency Progress Reports Feb 2020
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (January 2020) Executing Agency Progress Reports Jan 2020
Strengthening the Regional Development Bank Project: Semestral Progress Report (10 October-31 December 2019) Executing Agency Progress Reports Dec 2019
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (December 2019) Executing Agency Progress Reports Dec 2019
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (November 2019) Executing Agency Progress Reports Nov 2019
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (October 2019) Executing Agency Progress Reports Oct 2019
Guarantee Agreement (Ordinary Operations) for Loan 3774-SRI: Strengthening the Regional Development Bank Project Guarantee Agreements Jun 2019
Loan Agreement (Ordinary Operations) for Loan 3774-SRI: Strengthening the Regional Development Bank Project Loan Agreement (Ordinary Resources) Jun 2019
Strengthening the Regional Development Bank Project: Project Administration Manual Project/Program Administration Manual Jan 2019
Strengthening the Regional Development Bank Project: Gender Action Plan Gender Action Plans Jan 2019
Strengthening the Regional Development Bank Project: Technical Assistance Report Technical Assistance Reports Jan 2019
Strengthening the Regional Development Bank Project: Report and Recommendation of the President Reports and Recommendations of the President Jan 2019
Strengthening the Regional Development Bank Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Oct 2018

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.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Access to Information Policy (AIP) 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

Tender Title Type Status Posting Date Deadline
Research study on digital engagement Firm - Consulting Closed 14 May 2020 04 Jun 2020
Credit Scoring Implementation Firm Firm - Consulting Closed 08 May 2020 14 May 2020
White Paper on Government Micro, small and medium-sized enterprise support programs Firm - Consulting Closed 04 Apr 2020 15 May 2020
Senior MSME Finance Policy Advisor Individual - Consulting Closed 04 Apr 2020 10 Apr 2020
SRDB TA - White paper on government micro, small and medium-sized programs Firm - Consulting Closed 23 Jan 2020 29 Jan 2020
Digital Finance Expert Individual - Consulting Closed 11 Dec 2019 06 Jan 2020
SRDB TA - International Banking advisor and team leader Individual - Consulting Closed 16 Mar 2019 22 Mar 2019
SRB TA - National Safeguards Expert Individual - Consulting Closed 16 Mar 2019 29 Mar 2019
SRDB TA - Banking Firm - Consulting Closed 13 Mar 2019 22 Apr 2019
SRDB TA - Women Entrepreneurship Training Firm - Consulting Closed 13 Mar 2019 15 Apr 2019

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Capacity Development Technical Assistance 9711 15 Oct 2020 Pricewaterhousecoopers - Sri Lanka(SRI LANKA) 100, Braybrooke Place, Colombo 2, Western Sri Lanka, Sri Lanka Regional Development Bank 141,087.00
Capacity Development Technical Assistance 9711 19 Aug 2019 ERNST & YOUNG (SRI) (SRI LANKA) 201, DE SERAM PLACE, COLOMBO 10 COLOMBO, WESTERN PROVINCE, SRI LANKA Regional Development Bank Consulting Services 197,754.00

Procurement Plan

None currently available.