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Sri Lanka gets Euro 90 m European Investment Bank loan

The European Investment Bank (EIB) has signed a euro 90 million loan agreement with the Sri Lankan government. The loan aims at supporting both private and public industries and the services sector in projects across the country that contribute to climate change mitigation and support development of the local private sector through finance to small and medium enterprises.

The project aims to improve small and medium enterprises access to long term financing, and will help in re-establishing the economy emerging from conflict. The project also contributes to the European Union's global objective of climate change mitigation and adaptation and supports the Sri Lankan government to achieve its renewable energy generation target by 2015.

The facility is expected to contribute towards increased investment that will also lead to positive effects particularly in the fields of job creation, poverty alleviation and human welfare. The funds will be channeled through the Commercial Bank of Ceylon (CBC), DFCC Bank and the Regional Development Bank. Ambassador David Daly said: "Increased investment aimed at targeting the public and private sector companies in a wide range of sectors, including the service industry, has potential to create new jobs and fuel economic growth thereby directly befitting the people of Sri Lanka. This initiative by the European Investment Bank demonstrates Europe's motivation towards supporting sustainable economic growth and is a part of EU's wider engagement to supporting the country."