Financing Projects and Role of the Department of External Resources Indika Premaratne Director Department of External Resources

Vision shaping the future of Sri Lanka by mobilizing global knowledge, expertise and external financing for accelerated economic growth Mission Facilitate mobilizing external financing at affordable cost with minimum conditionality in support of the economic and social development of Sri Lanka while supporting long term debt sustainability of the country

Key Functions Conduct consultation with development partners to identify development assistance strategies and priorities Coordinate Annual Country Aid Programing activities of the development partners Prepare project pipelines for foreign financing Negotiate foreign financing with lenders Loan negotiations Government approvals

Medium-Term Economic Development Plan (2017-2020) Public Investment Programme (PIP) (2017-2020) “Long-term strategic and structural transformation in the country targeting to become the most open and competitive economy in South Asia”. Source: Economic Policy Statement (Nov 5, 2015)

Main Features of Medium-Term Economic Development Plan Addressing the present decline in export performance by improving productivity and competitiveness Promoting the inflow of foreign investment by making investor-friendly country   Diverting a higher share of government resources for upgrading the quality of human resources Education and Health sectors to receive 3% and 6% of GDP by 2025 Promote equity in the economic and social spheres. Strengthening local and provincial institutions, devolution and decentralization of administration etc. Minimize remaining regional disparities and poverty pockets. Special emphasis will be placed on environmental protection and natural resource conservation.

Planning Targets of PIP(2017-2020) Indicator 2017 2019 2020 GDP Growth Rate 6.0 5.5 7.0 Investment/GDP 30.3 31.5 Private Investment 25.1 25.8 Public investment 5.2 5.7 Budget Deficit/GDP 4.6 4.0 3.5

Financing Mechanisms of Projects in PIP Encourage private sector participation Concessional financing on G2G arrangements Public Enterprises to directly borrow No unsolicited project proposals Selection of companies through competition Swiss Challenge for unsolicited proposals Limited competitive bidding is possible for Government support export credit facilities

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