Cabinet has approved the proposal made by Prime Minister Mahinda Rajapaksa in his capacity as the Minister of Finance to seek a $ 180 million (over Rs. 34 billion) ‘COVID-19 Emergency and Crisis Response Facility’ from the Asian Infrastructure Investment Bank (AIIB).
The facility is for sectors such as tourism, apparel, construction, trade, manufacturing, agricultural exports and healthcare, which have been most affected by the pandemic, the Cabinet office stated.
“Accordingly, a project has been designed with Bank of Ceylon (BOC) and People’s Bank to use this facility, and the funds will help enhance the liquidity facilities required for small and medium enterprises (SMEs) in those sectors,” the Cabinet office said.
The project will see two loans worth $ 90 million each provided to the Bank of Ceylon and People’s Bank, and the banks will facilitate their clients, the Cabinet office explained.
Cabinet approved Premier’s proposal which includes Finance Ministry entering into the relevant agreements for the implementation of the proposed initiative.
(FT)