Undisbursed Multilateral Loans Stand at $1.7 Billion

COLOMBO (News 1st); The Pre-Election Budgetary Position Report 2024 released by the Ministry of Finance says that the undisbursed balance of multilateral foreign financing from already committed loans stood at USD 1,696 million, expected to be utilized over the next 3-5 years.

As of the end of August 2024, Sri Lanka has secured foreign financing agreements totaling USD 398.7 million with various development partners and lending agencies.

According to the Pre-Election Budgetary Position Report 2024, of this amount, USD 350.0 million was obtained through loans.

Additionally, USD 48.7 million was committed through seven grant agreements under Official Development Assistance (ODA) from the Governments of Japan and Australia.

From January 1 to August 31, 2024, total foreign financing disbursements amounted to USD 1,005.7 million. 

This includes USD 994.4 million disbursed as loans and USD 11.3 million as grants.

The Asian Development Bank (ADB) was the largest contributor, accounting for 36 percent of the total disbursements. 

This was followed by the International Monetary Fund (IMF) at 33 percent and the World Bank at 24 percent.

The majority of these disbursements were allocated to the budget support sector, which received 33 percent of the total funds. 

Other significant allocations included the power and energy sector at 13 percent, the SME development sector at 10 percent, and the finance sector at 7 percent.

As of August 31, 2024, the undisbursed balance of multilateral foreign financing from already committed loans stood at USD 1,696 million. These funds are expected to be utilized over the next 3-5 years.

However, the undisbursed balance of foreign financing from bilateral lenders has been impacted by the interim policy of temporarily suspending debt servicing.