Sri Lanka : Strengthening the Regional Development Bank Project

Sovereign Project | 52219-001

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 Name
Strengthening the Regional Development Bank Project
Project Number
52219-001
Country / Economy
  • Sri Lanka
Project Status
Closed
Project Type / Modality of Assistance
  • Loan
  • Technical Assistance
Source of Funding / Amount
Loan 3774-SRI: Strengthening the Regional Development Bank Project
Source Amount
Ordinary capital resources US$ 50.00 million
TA 9711-SRI: Enhancing Rural Micro and Small-Sized Enterprises Finance
Source Amount
Japan Fund for Prosperous and Resilient Asia and the Pacific 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
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)

Output 1:

Achieved. Board approved the deposit product on February 2021. Product Liyasawiya (savings product) was launched on 8 March 2021.

Ongoing. $50 million was disbursed, out of which $40 million has been liquidated as of 24 November 2022.

Achieved. 3,036 women-led businesses have been funded.

Output 2

Achieved. Strategy paper completed and to be incorporated in RDB's corporate plan.

Achieved. 5 November 2021 letter from the General Manager of RDB confirmed achievement and sample print screen of the report was provided.

Achieved. ADB-approved environmental and social management systems is uploaded in ADB's website.

Achieved. Approved by RDB's ALCO on March 2021. 5 November 2021 letter from the General Manager of RDB confirmed that the new ALCO reporting was implemented.

Output 3

Ongoing

Ongoing. 204 women clients have been trained as of 24 November 2022.

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

Contact

Responsible ADB Officer
Gunawardhena, Manohari
Responsible ADB Department
Sectors Group
Responsible ADB Division
Finance Sector Office (SG-FIN)
Executing Agencies
Regional Development Bank

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
13 Dec 2022

Funding

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 31 Dec 2023 31 Dec 2023
Financing Plan
  Total (Amount in US$ million)
Project Cost 50.00
ADB 50.00
Counterpart 0.00
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 06 Jul 2024 50.00 0.00 100%
Cumulative Disbursements 06 Jul 2024 50.00 0.00 100%

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 Dec 2023 27 Jun 2024
Financing Plan/TA Utilization
ADB Cofinancing Counterpart Total
Gov Beneficiaries Project Sponsor Others
0.00 1,000,000.00 0.00 0.00 0.00 0.00 1,000,000.00
Cumulative Disbursements
Date Amount
06 Jul 2024 865,931.59

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 (August 2023) Executing Agency Progress Reports Aug 2023
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (July 2023) Executing Agency Progress Reports Jul 2023
Strengthening the Regional Development Bank Project: Executing Agency Semestral Progress Report (January-June 2023) Executing Agency Progress Reports Jun 2023
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (June 2023) Executing Agency Progress Reports Jun 2023
Strengthening the Regional Development Bank Project: Audited Project Financial Statements (January-December 2022) Audited Project Financial Statements Jun 2023
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (May 2023) Executing Agency Progress Reports May 2023
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (April 2023) Executing Agency Progress Reports Apr 2023
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (March 2023) Executing Agency Progress Reports Mar 2023
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (February 2023) Executing Agency Progress Reports Feb 2023
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (January 2023) Executing Agency Progress Reports Jan 2023
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (December 2022) Executing Agency Progress Reports Dec 2022
Strengthening the Regional Development Bank Project: Executing Agency Semestral Progress Report (July-December 2022) Executing Agency Progress Reports Dec 2022
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (November 2022) Executing Agency Progress Reports Nov 2022
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (October 2022) Executing Agency Progress Reports Oct 2022
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (September 2022) Executing Agency Progress Reports Sep 2022
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (August 2022) Executing Agency Progress Reports Aug 2022
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (July 2022) Executing Agency Progress Reports Jul 2022
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (June 2022) Executing Agency Progress Reports Jun 2022
Strengthening the Regional Development Bank Project: Executing Agency Semestral Progress Report (January-June 2022) Executing Agency Progress Reports Jun 2022
Strengthening the Regional Development Bank Project: Audited Project Financial Statements (January-December 2021) Audited Project Financial Statements Jun 2022
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (May 2022) Executing Agency Progress Reports May 2022
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (April 2022) Executing Agency Progress Reports Apr 2022
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (March 2022) Executing Agency Progress Reports Mar 2022
Strengthening the Regional Development Bank Project: Executing Agency Semestral Progress Report (July-December 2021) Executing Agency Progress Reports Dec 2021
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (December 2021) Executing Agency Progress Reports Dec 2021
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (November 2021) Executing Agency Progress Reports Nov 2021
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (October 2021) Executing Agency Progress Reports Oct 2021
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (September 2021) Executing Agency Progress Reports Sep 2021
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (August 2021) Executing Agency Progress Reports Aug 2021
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (July 2021) Executing Agency Progress Reports Jul 2021
Strengthening the Regional Development Bank Project: Audited Project Financial Statements (January-December 2020) Audited Project Financial Statements Jul 2021
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (April 2021) Executing Agency Progress Reports Apr 2021
Strengthening the Regional Development Bank Project: Executing Agency Monthly Progress Report (March 2021) Executing Agency Progress Reports Mar 2021
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: Executing Agency Semestral Progress Report (July-December 2020) Executing Agency Progress Reports Dec 2020
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: 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: Gender Action Plan Gender Action Plans 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: Technical Assistance Report Technical Assistance Reports Jan 2019
Strengthening the Regional Development Bank Project: Project Administration Manual Project/Program Administration Manual 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
Enhancing Rural Micro and Small-Sized Enterprises - Core Banking System Expert Individual - Consulting Closed
Enhancing Rural Micro and Small-Sized Enterprises - Project Evaluation Reporting Expert Individual - Consulting Closed
Enhancing Rural Micro and Small-Sized Enterprises - Banking Expert Individual - Consulting Closed
SRB TA - National Safeguards Expert Individual - Consulting Closed
Strengthening the Regional Development Bank Project: Loan Officer Training & Loan Origination System Change Management Firm Firm - Consulting Closed
Independent Nonperforming Loan Study Firm - Consulting Closed
Research study on digital engagement Firm - Consulting Closed
Credit Scoring Implementation Firm Firm - Consulting Closed
Senior MSME Finance Policy Advisor Individual - Consulting Closed
White Paper on Government Micro, small and medium-sized enterprise support programs Firm - Consulting Closed
SRDB TA - White paper on government micro, small and medium-sized programs Firm - Consulting Closed
Digital Finance Expert Individual - Consulting Closed
SRDB TA - International Banking advisor and team leader Individual - Consulting Closed
SRB TA - National Safeguards Expert Individual - Consulting Closed
SRDB TA - Women Entrepreneurship Training Firm - Consulting Closed
SRDB TA - Banking Firm - Consulting Closed

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 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 197,754.00

Procurement Plan

None currently available.