Sri Lanka receives $50 Million from Saudi Development Fund

Saudi Development Fund (SFD) has agreed to provide a concessional loan valued at an approximately $50 million, to create a medical faculty at Sabaragamuwa University. The GOSL will bear the balance of 20.46 million dollars. Accordingly, on behalf of Sri Lanka and on behalf of the Saudi Development Fund, the loan was signed by the Secretary to the Ministry of Finance, Dr. R.H.S. Samaratunge and Vice Chairman and Managing Director, Dr. Khaled Sulaiman Alkhudairy, at the Ministry of Finance on 18 September.

The government views the provision and enhancement of social goods such as education, skill growth, and healthcare as part and parcel of its growth agenda in line with the government policy framework 'Vision 2025.' The amount of medical officers per 100,000 communities in Sri Lanka is about 77, according to access data from the Ministry of Health, Nutrition and Indigenous Medicine. However, according to the World Health Organization, in developed countries, the density of medical officers per 100,000 inhabitants is tested above the Sri Lankan level.

Thus, by raising college enrollment, the government will take measures to boost tertiary education. As the government seeks to extend the advantages of growth to every portion of the nation, it should be followed by quality and qualified healthcare experts in the country to establish healthcare services with suitable norms. The economic cooperation agreement between the Sri Lankan government and the Kingdom of Saudi Arabia was launched in 1981 through the Saudi Development Fund to extend a $30 million loan to the Second Water Sector and Sewerage project.

Development initiatives funded by the Saudi Fund Development through concessional funding are essential milestones in the two-country relationship. The complete quantity of loans expanded by the SFD was $386 million at the end of 2018. The SFD agency’s priority regions are sectors of highway, health, irrigation and community growth, higher education, etc.

OSL Take: The commitment of US$ 300 million by the Kingdom of Saudi Arabia towards Sri Lanka’s development program is indicative of the close ties maintained between the two countries. Apart from being the largest employer of Sri Lankan migrant workers, Saudi Arabia also imports a large quantity of Sri Lankan tea. Both Sri Lanka and Saudi Arabia have been engaging in trade activities for many decades. Therefore, Saudi companies could explore possibilities of doing business with Sri Lankan entities and foreign companies involved in the higher education sector could explore potential opportunities in Sri Lanka.

VBS/AT/20191101/Z_TB3