ADB to Provide USD 790 Million in New Loans to Sri Lanka

Aruna Shantha

15-Sep-2025 09:44:54

The Asian Development Bank (ADB) has announced plans to extend new financial assistance totaling USD 790 million to Sri Lanka this year, along with an additional grant of USD 6.9 million, subject to approval by the ADB Board of Directors. The funding will also depend on the government’s progress in meeting required policy actions tied to policy-based loans (PBLs).

Under policy-based loans (PBLs) aimed at budget support, ADB has earmarked:

USD 100 million for the Financial Sector Stability and Reforms Program – SP 3

USD 100 million for the Power Sector Reforms and Financial Sustainability Program

USD 100 million for Strengthening Macroeconomic Resilience and Transparency – SP 1

USD 70 million for the Sustainable Tourism Sector Development Program – SP 1

In addition, USD 420 million has been allocated under investment project loans, covering:

USD 100 million for the health sector

USD 200 million for agriculture and irrigation

USD 90 million for transport and road development

USD 30 million for tourism initiatives

The ADB noted that policy-based loans will directly provide budgetary support to bridge Sri Lanka’s financing gap, while investment loans will focus on long-term development projects.

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