Sri Lanka depends on Foreign Financing Commitments for the Public Investment Program (PIP), to achieve Medium Term Fiscal Framework and the envisaged public debt management targets.
The Government has entered into 41 financial agreements to mobilize US$ 4,741.6 million in 2018 of which US$ 1,241.6 million was committed through 37 Official Development Assistance (ODA) agreements., finance ministry data showed.
Of the total value of ODA commitments, US$ 1,108.7 million was committed by entering into 25 loan agreements and US$ 132.9 million was committed from 14 grant agreements.
In addition to the foreign financing committed for development activities, the Government was acquired US$ 3,500 million using facilities available in the international capital markets, of which US$ 1,000 million was raised through Foreign Currency Term Financing Facility Loan and US$ 2,500 was raised by issuing International Sovereign Bonds (ISBs).
The highest amount of ODA was committed mainly by the Asian Development Bank (ADB) followed by China, the World Bank, and Japan, respectively. This financing will be utilized within the next 3-4 years mainly in the sectors such as education and training
In terms of ODA commitments made in 2018, the education and training sector received the highest commitments amounting to US$ 269.0 million or 30 percent of the total ODA commitments.
The commitments are to be utilized mainly in the flagship projects including ADB funded skills sector enhancement program (US$ 103.0 million), World Bank-funded general education modernization project (US$ 100.0 million), and OPEC funded technical education development program (US$ 50.0 million).
The second highest commitments were received to finance the projects implemented in the environment sector, which is to be utilized in the Mahaweli water security investment program (US$ 210 million). In addition, the Government has committed a considerable amount in health and social welfare and roads and bridges in 2018.
(LI)