The Asian Development Bank (ADB) is now building a strong pipeline of projects in the next three years in order to provide US $ 2 billion in loans and equity in 2016 through 2018, compared with US $ 1.5 billion in last three years, its president Takehiko Nakao said.
"I look forward to working with the government in elaborating and implementing its development vision and strategy through ADB support. Good governance which has improved in a remarkable manner prompted us to scale up our support to Sri Lanka, Nakao told a media conference yesterday at the Galle Face Hotel,Colombo.
ADB is to increase their loan amount from US $ 500 million to US$ 700 million in the next three years but if that amount is not ample enough they would be considering to increase that amount as well, the ADB president said.
He also said that they would focus on assisting in several important areas, including, maintaining fiscal consolidation, building support for the development of the renewable energy sector and supporting the budget.
Nakao also said that ADB is planning to co financé certain projects, for the development of the country.
"ADB is re-orienting its operations to meet the evolving needs of Sri Lanka as it moves to become an upper middle income country in the next few years.
"Until recently, ADB has focused on improving basic infrastructure, such as, national and provincial roads, electricity transmission lines and rural water supply. In the coming three years ADB assistance will be further expanded to support higher quality transformative infrastructure, including expressways, railway upgrades and power generation and building economic corridors to accelerate industrialization, he said.
Nakoa reiterated the importance of prudent macroeconomic management, especially fiscal consideration measures, for the country to grow at 6 percent or above per annum, tax revenue enhancement, and effective management of public expenditure.
"Therefore, we will support the government’s public finance management reform initiative, which will boost the credibility of the budget framework and improve controls and transparency in budget execution, he said.
Nakao also said that structural reforms are critical to ensure steady employment creation and the country’s entry into the global value chain.
Nako yesterday met President Maithripala Sirisena, Prime Minister Ranil Wickremesinghe and Finance Minister Ravi Karunanayake to reaffirm ADB’s strong commitment to Sri Lanka’s continued development.