Sri Lanka Bags USD 300M ADB Lifeline to Power Economy and Tourism

COLOMBO (News 1st); Sri Lanka has signed three major loan agreements with the Asian Development Bank (ADB, totaling USD 300 million, aimed at strengthening financial stability, macroeconomic resilience, and sustainable tourism development.

The agreements were signed on Monday (17) at the Treasury in Colombo by Dr. Harshana Suriyapperuma, Secretary to the Ministry of Finance, Planning and Economic Development, and Takafumi Kadono, Country Director of ADB’s Sri Lanka Resident Mission.

Under the deal, Sri Lanka will receive funding through two Policy-Based Loans (PBLs) and one combined PBL and investment loan:

Financial Sector Stability and Reforms Program (Subprogram 3) – USD 100 million

Designed to complete multiyear structural reforms and strengthen the regulatory capacity of the Central Bank of Sri Lanka (CBSL), this program focuses on banking sector stability, governance, and inclusive finance.

Strengthening Macroeconomic Resilience and Transparency Program (Subprogram 1) – USD 100 million

Supports macroeconomic stabilization and public financial management reforms, including improved expenditure management, resource mobilization, and private sector participation.

Sustainable Tourism Sector Development Program (Subprogram 1) – USD 100 million

Includes USD 70 million for policy reforms and USD 30 million for investment projects to enhance tourism infrastructure in Trincomalee and Dambulla (including Sigiriya), manage congestion, and boost regional economic contributions.

The Ministry of Finance will execute the policy-based components, while the Ministry of Transport, Highways and Urban Development will oversee investment activities under the tourism program.