ADB Approves USD 200 Million Loan to Sri Lanka

The loan will assist Sri Lanka in implementing a comprehensive set of reforms designed to improve financial sector oversight, bolster the regulatory framework, and increase financial inclusion. Key measures will focus on strengthening banking sector governance, enhancing financial market infrastructure, and improving the regulatory environment to support private sector investment and economic recovery.

ADB’s loan is aligned with Sri Lanka’s broader economic recovery plan, which aims to stabilize the economy after a period of severe financial and economic stress. By improving the financial sector, the loan will contribute to increasing investor confidence, facilitating more access to credit for businesses, and supporting long-term growth.

"We are pleased to support Sri Lanka in its efforts to stabilize and rebuild its financial system," said ADB President Masatsugu Asakawa. "The reforms will strengthen the country's financial sector, promote economic stability, and create a foundation for sustainable development."

The loan is part of ADB’s continued commitment to supporting Sri Lanka’s economic recovery and development. Since 1972, ADB has been a key partner in Sri Lanka's efforts to improve infrastructure, reduce poverty, and enhance governance across various sectors.

This policy-based loan complements other ongoing assistance provided by ADB, which includes projects aimed at enhancing energy efficiency, improving transport networks, and promoting education and health services.