ASIAN DEVELOPMENT BANK MEMBER FACT SHEET

Sri Lanka: 2020 Loans, Grants, Equity Investments, Technical Assistance, and Trade and Supply Chain Finance and While assisting the country in its socioeconomic recovery Microfinance Program Commitments ($ million)a from the COVID-19 pandemic, ADB will continue to Product Type Sovereign Nonsovereign Total support Sri Lanka’s sustainable and inclusive development Loans 565.00 – 565.00 Grants 4.25 – 4.25 in the long term. Technical Assistanceb 9.66 0.42 10.08 Trade and Supply Chain – 358.31 358.31 Finance and Microfinancec Total 578.91 358.73 937.64 – = nil, DMC = developing member country, TA = technical assistance. Notes: Commitment is the financing approved by ADB’s Board of Directors or Management for which the legal agreement has been signed by Sri Lanka the borrower, recipient, or the investee company and ADB. Grants and TA include ADB-administered cofinancing. a Numbers may not sum precisely because of rounding. The Asian Development Bank (ADB) b Financing for TA projects with regional coverage is distributed to ADB-SUPPORTED PROJECTS their specific DMCs where breakdown is available. has been a major development partner AND PROGRAMS c ADB-financed commitments from nonsovereign revolving to Sri Lanka since 1966 and is today the programs of which $358.31 million is short term. country’s largest source of multilateral In 2020, ADB disbursed $745 million to development assistance. Sri Lanka, the highest ever annual total Sri Lanka: Cumulative Loans, Grants, for disbursements. Equity Investments, Technical Assistance, The coronavirus disease (COVID-19) and Trade and Supply Chain Finance and pandemic and associated restrictions Responding to an urgent request by Microfinance Program Commitmentsa, b, c, d in Sri Lanka impacted most major the Government of Sri Lanka, Total % COVID-19 sectors of the country’s economy. ADB reallocated $15 million from the Amount of Total Response Sector No. ($ million)e Amounte ($ million)e This comes in the wake of the Easter ongoing Health System Enhancement Projects and 552 11,049.26 85.76 375.10 Sunday terror attacks in 2019, which Project as COVID-19 assistance. These Technical Assistance Agriculture, Natural 133 1,420.05 11.02 – also had significant effects on economic funds supported the establishment Resources, and growth, especially on tourism. The path of a molecular biology laboratory Rural Development Education 45 1,332.33 10.34 200.00 to recovery will be challenging, given at the Infectious Diseases Hospital Energy 62 1,517.09 11.77 0.13 and isolation facilities at four ports Finance 62 1,360.12 10.56 168.02 uncertainties in the global economic Health 16 98.92 0.77 5.71 outlook and the fiscal constraints that of entry into Sri Lanka. The funds Industry and Trade 30 250.20 1.94 0.07 also helped purchase COVID-19 Information and – 0.26 0.00 – Sri Lanka faces. Communication testing consumables. In June 2020, Technology Since 1966, ADB has committed loans, ADB provided a $3 million grant to Multisector 16 173.06 1.34 – grants, and technical assistance totaling Public Sector Management 35 255.21 1.98 1.06 Sri Lanka from the Asia Pacific Disaster Transport 88 3,310.47 25.69 – $11.1 billion for Sri Lanka. Cumulative Response Fund to help transport health Water and Other 65 1,331.53 10.33 0.11 loan and grant disbursements to Urban Infrastructure and Services Sri Lanka amount to $7.96 billion. Trade and Supply Chain 2,612 1,834.79 14.24 271.13 Finance and Microfinancef These were financed by regular and Finance 1,310 917.39 7.12 135.56 concessional ordinary capital resources, Industry and Trade 1,302 917.39 7.12 135.56 Total 3,164 12,884.04 100.00 646.23 the Asian Development Fund, and other – = nil, 0.00 = less than 0.005%, COVID-19 = coronavirus disease, special funds. DMC = developing member country, TA = technical assistance. a Grants and TA include ADB-administered cofinancing. b Includes sovereign and nonsovereign loans and technical assistance. c Using primary sector in reporting of commitments. d Financing for TA projects with regional coverage is distributed to their specific DMCs where breakdown is available. e Numbers may not sum precisely because of rounding. f ADB-financed commitments from nonsovereign revolving programs of which $1.82 billion is short term. Updated as of August 2021 workers during curfew hours, increase struggling due to COVID-19, and NONSOVEREIGN OPERATIONS testing capacity by procuring test kits promoting cash-flow-based lending. and reagents, and procure personal As a catalyst for private investments, In support of reforms to upper protective equipment and medical ADB provides financial assistance to secondary education under the consumables. ADB also provided nonsovereign projects and financial government’s General Education $1 million from a regional technical intermediaries. Total commitments Sector Development Plan 2020–2025, assistance project to procure in loans and equity investments from ADB approved a loan of $400 pandemic-related goods and ADB’s own funds in 2020 amounted million for the Secondary Education equipment. to $1.4 billion for 38 transactions in Sector Improvement Program. The economic and social infrastructure, To support longer-term inclusive program aims to enhance the quality finance sector, and agribusiness. growth in Sri Lanka, ADB approved and relevance of upper secondary ADB also actively mobilizes $165 million in November 2020 as science, technology, mathematics, and cofinancing from commercial and a third phase of additional financing commerce programs; strengthen the concessional sources. In 2020, ADB for the Small and Medium-Sized capacity of provincial governments mobilized $1.9 billion of long-term Enterprises Line of Credit Project. and schools to implement education project cofinancing and $3.3 billion This was cofinanced by the Japan reforms; and improve sector of cofinancing through its Trade Fund for Poverty Reduction with a management capacity. This investment and Supply Chain Finance Program $1.25 million grant. The third tranche builds on ADB’s long-term engagement and Microfinance Program. Total of additional financing will deepen the in Sri Lanka’s education sector and outstanding balances and commitments financial ecosystem for Sri Lanka’s tackles key challenges stemming from of nonsovereign transactions funded small and medium-sized the COVID-19 pandemic. by ADB’s own resources stood at enterprises and promote women’s $14.3 billion as of 31 December 2020. ADB’s technical assistance program entrepreneurship. It will help expand in 2020 included support for human financial inclusion by piloting an Total outstanding balances and capital development, improving affordable credit facility for strategically commitments of ADB’s nonsovereign project readiness and portfolio important and historically underserved transactions in the country as of management, and supporting tea smallholders, providing an 31 December 2020 was $478.6 million, national development planning as the affordable working capital facility for representing 3% of ADB’s total government considers policies small and medium-sized enterprises nonsovereign portfolio. for COVID-19 pandemic recovery.

Sri Lanka: Evaluation Results for Sovereign Sri Lanka: Ordinary Capital Resources and Nonsovereign Operations, 2011–2020 Nonsovereign Commitments by Product Total Number 2020 2016–2020 of Validated Evaluation Ratings Number of Transactions Signed (OCR) – 2 and Evaluated Number of Transactions Signed (Programs) 366 726 Projects and Highly successful Less than Amount ($ million) Programs and successful successful Unsuccessful Loans – 69.00 Sovereign 29 18 11 – Equity Investments – – Operations Guarantees – – Nonsovereign 9 8 1 – Trade and Supply Chain Finance Program 358.31 1,142.29 Operations and Microfinance Program – = nil, IED = Independent Evaluation Department. Total 358.31 1,211.29 Note: The figures indicate the number of sovereign and nonsovereign operations in the country – = nil, OCR = ordinary capital resources. that have been validated or evaluated by the IED and their overall performance ratings. The coverage consists of all validated or evaluated project completion reports and extended annual review reports circulated by ADB within the 10-year period from 1 July 2010 to 30 June 2020. See evaluations related to Sri Lanka. Sri Lanka: Portfolio Performance Quality Indicators Source: IED success rate database (as of 31 December 2020). for Sovereign Lending and Grants, 2019–2020 No. of Ongoing Loansa (as of 31 Dec 2020) 48 2019 ($ million) 2020 ($ million) Contract Awardsb, c 456.38 366.38 Sri Lanka: Projects Cofinanced, Disbursementsb 408.00 734.89 1 January 2016–31 December 2020 No. of Ongoing Grantsa,d (as of 31 Dec 2020) 2 2019 ($ million) 2020 ($ million) Cofinancing No. of Projects Amount ($ million) Contract Awardsb, c, d 0.47 3.17 Sovereign 16 453.97 Disbursementsb, d 1.44 8.85 Loans 3 422.73 At Risk Projects (%) (as of 31 Dec 2020) 3 Grants 4 17.55 a Based on commitments. Technical Assistance 9 13.69 b Includes closed loans/grants that had contract awards or disbursements during the year. Nonsovereign 3 3,100.29 c Excludes policy-based, results-based, and financial intermediation/credit loans and grants. d Includes only Asian Development Fund and other ADB special funds. Sri Lanka: Share of Procurement Contracts for Loan, Grant, and Technical Assistance Projects Cumulative 2019 2020 (as of 31 Dec 2020) Amount % of Amount % of Amount % of Item ($ million) Total ($ million) Total ($ million) Total Goods, Works, and Related Services 164.88 1.16 358.48 1.57 4,866.15 2.25 Consulting Services 13.92 1.84 5.40 0.74 144.09 1.02 Total Procurement 178.79 1.20 363.88 1.55 5,010.25 2.17

Top 5 Contractors/Suppliers from Sri Lanka Involved in Top 5 Consultants from Sri Lanka Involved in Consulting Goods, Works, and Related Services Contracts under ADB Services Contracts under ADB Loan, Grant, and Technical Loan and Grant Projects, 1 January 2016–31 December 2020 Assistance Projects, 1 January 2016–31 December 2020 Contract Amount Contract Amount Contractor/Supplier Sector ($ million) Consultant Sector ($ million) Maga Engineering Pvt. Ltd. EDU, TRA 222.24 Resources Development ANR, EDU, HLT, 10.65 K.D.A. Weerasinghe & Co. Pvt. Ltd. TRA, WUS 46.36 Consultants Pvt. Ltd. WUS Sierra Construction Pvt. Ltd. TRA, WUS 44.13 Engineering Consultants Pvt. Ltd. ANR, WUS 5.52 Nawaloka Construction Co. Pvt. Ltd. ANR, TRA 35.80 MG Consultants Pvt. Ltd. TRA 3.69 CML-MTD Construction Ltd. ANR, TRA 32.41 SMEC Sri Lanka WUS 3.64 Others 941.66 Greentech Human Resource WUS 2.70 Total 1,322.60 Development Pvt. Ltd. ANR = agriculture, natural resources, and rural development; EDU = education; Individual Consultants 14.36 TRA = transport; WUS = water and other urban infrastructure and services. Others 10.25 Total 50.82 ANR = agriculture, natural resources, and rural development; EDU = education; HLT = health; TRA = transport; WUS = water and other urban infrastructure and services.

PARTNERSHIPS transactions under ADB’s Trade and Share of ADB’s Procurement Supply Chain Finance Program and Contracts ADB is one of Sri Lanka’s major Microfinance Program. development partners and actively Goods, Works, and Related Services discusses cofinancing opportunities with ADB began cofinancing operations ADB’s procurement contracts in Asia other development partners. in Sri Lanka in 1972. Since then, and the Pacific for goods, works, and sovereign cofinancing commitments related services under loan and grant Coordination among development for the country have amounted to partners is strong in Sri Lanka, with operations totaled $14.19 billion in 2019 $1.42 billion for 42 investment projects and $22.79 billion in 2020. Cumulative major organizations meeting regularly and $29.56 million for 42 technical to share information. ADB missions procurement since 1966 has been assistance projects. Nonsovereign $216.35 billion covering 222,415 contracts. meet with relevant stakeholders on cofinancing has amounted to the processing and implementation of $3.85 billion for six investment projects. For contractors and suppliers from projects. ADB also interacts bilaterally Sri Lanka, 15,560 contracts worth with major development partners—such In 2020, Sri Lanka received $1.25 million $4.87 billion have been awarded as the International Monetary Fund, grant cofinancing from the Japan Fund since 1966. the Japan International Cooperation for Poverty Reduction for the Small Agency, and the World Bank—on and Medium-Sized Enterprises Line Consulting Services specific activities. of Credit Project – Third Additional ADB’s procurement contracts in Financing. Asia and the Pacific for consulting ADB engages with the private services under loan, grant, and sector in Sri Lanka to strengthen the A summary of projects with cofinancing technical assistance operations effectiveness, quality, and sustainability from 1 January 2016 to 31 December totaled $756.72 million in 2019 and of the assistance it provides. 2020 is available at www.adb.org/ countries/sri-lanka/cofinancing. $732.11 million in 2020. Cumulative procurement since 1966 has been FINANCING PARTNERSHIPS $14.13 billion covering 67,086 contracts. Financing partnerships enable ADB’s PROCUREMENT For consultants from Sri Lanka, financing partners, governments or Each year, ADB provides loans, grants, 1,562 contracts worth $144.09 million their agencies, multilateral financing and technical assistance to fund have been awarded since 1966. institutions, and commercial projects and activities in its developing organizations to participate in financing OPERATIONAL CHALLENGES member countries and several billion ADB projects. The additional funds dollars in contracts to procure goods, In 2020, travel restrictions brought on are provided in the form of loans and works, and consulting services. Most by the COVID-19 pandemic delayed grants, technical assistance, and other contracts are awarded on the basis of ADB operations in Sri Lanka during the nonsovereign cofinancing such as international competition, which is first half of the year. B loans, risk transfer arrangements, open to firms and individuals from all parallel loans and equity, guarantee ADB members. Other operational challenges continue cofinancing, and cofinancing for to hinder project implementation in the country. These include lengthy land such review missions were conducted sustainable and inclusive development acquisition procedures, procurement in an online environment. in the long term. The bank’s financial delays caused by cumbersome approval investments and knowledge work Through technical assistance, ADB processes, limited availability of will seek to strengthen the drivers of is helping improve project readiness counterpart funding, and poor contractor growth by promoting diversification and portfolio management and build performance. Regular portfolio of economic activities, supporting institutional capacity in Sri Lanka, review meetings—involving ADB, the human capital development, driving particularly in new implementing and government, and executing agencies, productivity enhancements, and executing agencies. and benefiting from constant follow-up improving the quality of growth by with government counterparts—help fostering inclusiveness. In close resolve project implementation issues FUTURE DIRECTIONS consultation with the government, and foster information sharing. Regular While assisting the country in its ADB has begun processing a new review missions are also conducted socioeconomic recovery from the country partnership strategy to address by ADB staff to provide support for COVID-19 pandemic, ADB will Sri Lanka’s priorities as it emerges from implementation on the ground. In 2020, continue to support Sri Lanka’s the COVID-19 pandemic beyond 2022.

About Sri Lanka and ADB Contacts Sri Lanka Resident Mission ADB Membership Asian Development Bank Joined 1966 23, Independence Avenue Shareholding and Voting Power Colombo 7, Sri Lanka Number of shares held: 61,560 (0.579% of total shares) Tel: +94 11 267 4499 Votes: 100,674 (0.757% of total membership, Fax: +94 11 267 4488 1.162% of total regional membership) www.adb.org/sri-lanka *Overall capital subscription: $886.63 million *Paid-in capital subscription: $44.35 million ADB Headquarters *United States dollar figures are valued at rate as of 31 December 2020. 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines Contributions to Special Funds Resources Tel: +63 2 8632 4444 Sri Lanka has contributed to the Technical Assistance Special Fund (TASF), which provides grants to Fax: +63 2 8636 2444 borrowing members to help prepare projects and undertake technical or policy studies. Ministry of Finance Contributions to the TASF (committed): $0.01 million Development The Secretariat, Lotus Road Basil Rajapaksa is the Governor and S R Attygalle is the Alternate Governor for Sri Lanka in ADB. Colombo 1, Sri Lanka Kisun Bang is the Director and Yu-Peng (James) Tseng is the Alternate Director representing Sri Lanka on the ADB Board of Directors. Department of External Resources 3rd Floor, The Secretariat, Lotus Road Chen Chen is the ADB Country Director for Sri Lanka. The Sri Lanka Resident Mission was Colombo 1, Sri Lanka established in 1997 and provides the primary operational link for activities between ADB and the government, the private sector, civil society stakeholders, and development partners. The resident Useful ADB websites mission engages in policy dialogue, country partnership strategy development and programming, and portfolio management and project implementation, while also acting as a knowledge base on Asian Development Bank development issues in Sri Lanka. www.adb.org

The Sri Lanka government agencies handling ADB affairs are the Ministry of Finance and relevant Annual Report line ministries. www.adb.org/documents/series/adb-annual- reports About the Asian Development Bank ADB is a multilateral development bank owned by 68 members, 49 from Asia and the Pacific and Asian Development Outlook 19 from other parts of the world. ADB’s main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance. In 2020, www.adb.org/publications/series/asian- lending volume was $26.9 billion (149 projects), with technical assistance at $293.56 million development-outlook (275 projects) and grant-financed projects at $1.08 billion (62 projects). In addition, $16.41 billion was generated for sovereign and nonsovereign cofinancing in the form of loans and grants, B loans, ADB Data Library risk transfer arrangements, guarantee cofinancing, parallel loans, parallel equity, and cofinancing data.adb.org for transactions under ADB’s Trade and Supply Chain Finance Program and Microfinance Program. From 1 January 2016 to 31 December 2020, ADB’s annual lending volume averaged $19.69 billion. In addition, investment grants and technical assistance funded by ADB and Special Funds resources averaged $805.5 million and $230.81 million respectively over the same period. As of 31 December 2020, the cumulative commitments excluding cofinancing were $323.17 billion in loans for 3,369 projects in 44 countries, $11.3 billion in 495 grants, and $5.01 billion in technical assistance grants, including regional technical assistance grants.

Notes: Figures are estimated by ADB unless otherwise stated. “$” refers to United States dollars. Data are updated as of 31 December 2020 unless otherwise indicated.