SriLanka, May 3 -- Sri Lanka is negotiating with the Asian Development Bank (ADB) to secure a new US$ 120 million credit line, along with grants, to set up the country's first State-backed venture capital fund and concessional loan financing scheme for micro, small and medium enterprises (MSMEs), a top Government official told the Sunday Observer Business.

"We plan to secure at least a US$ 120 million credit facility around July, and further negotiations are under way to obtain additional grant funding for the nation's SME financing process," he said.

According to him, Sri Lanka is all set to set up a State-backed Venture Capital (VC) fund to support the country's growing MSMEs and start-ups.

"We expect at least US$ 20 million in ADB s...