ADB supports Sri Lanka with US$100 Million for financial sector stability

The Asian Development Bank (ADB) has approved a US$100 million loan to address complex and challenging structural reforms in Sri Lanka’s financial sector through improved governance, continued policy reforms, and enhanced financial inclusion.

This loan builds on the structural reforms supported under two previous ADB lending programs totaling US$400 million since the country’s economic crisis in 2022. It will support the culmination of earlier reform efforts, focusing on the completion and long-term sustainability of measures aimed at strengthening the financial sector’s resilience and ensuring continued service delivery.

“The ADB is proud to support Sri Lanka’s continued efforts to strengthen the financial sector,” said ADB Country Director for Sri Lanka, Takafumi Kadono.

“This initiative builds on earlier banking sector reforms and aims to broaden access to finance for micro, small, and medium-sized enterprises, with a strong focus on empowering women-led businesses. We remain committed to working alongside the government to promote long-term financial stability and drive sustainable development.”

The program will enhance stability, capital adequacy, risk management, and governance in the banking sector, thereby enabling financial regulators to be better equipped to manage potential financial crises. This will help boost public confidence in the financial system and safeguard public interest. The program will also promote financial inclusion and sustainability, helping to improve financial intermediation and the flow of credit to end borrowers.

The overarching development objective of the program is fully aligned with the country’s strategy to maintain financial sector stability amid the economic crisis, while ensuring the long-term resilience of the banking sector. Furthermore, the program aims to improve access to finance for businesses across diverse sectors of the economy.

The ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. Working with its members and partners to solve complex challenges, the ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard the planet. Founded in 1966, the ADB is owned by 69 members, 50 from the region.