Sri Lanka secures USD 300 Million from ADB to strengthen the economy

The Government of Sri Lanka has finalized agreements with the Asian Development Bank (ADB) to receive USD 300 million in funding aimed at strengthening the country’s financial sector, improving macroeconomic stability, and developing key tourism destinations.

The financing includes three major programs:

1. Financial Sector Stability and Reforms Program (Subprogram 3) – USD 100 million (Policy-Based Loan)
2. Strengthening Macroeconomic Resilience and Transparency Program (Subprogram 1) – USD 100 million (Policy-Based Loan)
3. Sustainable Tourism Sector Development Program (Subprogram 1) – USD 100 million (Policy-Based Loan + Investment Loan)

Strengthening the Financial Sector

Under the Financial Sector Stability and Reforms Program, Sri Lanka will receive USD 100 million from ADB’s concessional Ordinary Capital Resources. This program aims to complete multi-year reforms and improve the regulatory capacity of the Central Bank of Sri Lanka.

The funding follows the completion of 11 policy actions designed to strengthen banking sector stability and governance, improve the quality of banking sector assets, and expand sustainable and inclusive financing.

Supporting Macroeconomic Stability

The Strengthening Macroeconomic Resilience and Transparency Program provides another USD 100 million after Sri Lanka completed 11 policy actions aimed at supporting the country’s reform agenda.

These reforms focus on improving public expenditure management, increasing domestic revenue, and creating a better environment for private sector growth.

Boosting Tourism Development

The Sustainable Tourism Sector Development Program (Subprogram 1) includes two components:

• USD 70 million Policy-Based Loan: Focused on structural reforms, capacity-building, and policy changes to increase private sector participation and improve institutional efficiency within the tourism sector.
• USD 30 million Investment Loan: Directed at developing tourism potential in Trincomalee and Dambulla (including Sigiriya). This investment will help expand destination capacity, manage tourist congestion, extend visitor stay periods, and strengthen tourism’s contribution to regional economies.

The Ministry of Transport, Highways and Urban Development will act as the executing and implementing agency for the investment component, while the Ministry of Finance, Planning and Economic Development will oversee all policy-based loans.

Loan Agreements Signed in Colombo

The agreements were signed at the Treasury in Colombo on November 17, 2025.

• Dr. Harshana Suriyapperuma, Secretary of the Ministry of Finance, Planning and Economic Development, signed on behalf of the Government of Sri Lanka.
• Mr. Takafumi Kadono, Country Director of the ADB Sri Lanka Residence Mission, signed on behalf of the Asian Development Bank.

The government stated that these programs will support Sri Lanka’s ongoing recovery efforts and contribute to long-term economic resilience.