ADB approves $200m support package for Lanka amid global economic pressures

The Asian Development Bank (ADB) is set to provide US$200 million in policy-based financing to Sri Lanka to support trade, investment and industry reforms as global economic uncertainty intensifies due to the conflict in the Middle East.

The financing is part of a broader US$450 million support package announced by the ADB for Sri Lanka and Cambodia to help protect vulnerable communities and strengthen economic resilience across the region.

ADB President Masato Kanda said the package was aimed at helping countries manage external shocks while supporting long-term economic recovery.

“No family should be pushed deeper into poverty by a conflict thousands of kilometers away,” Kanda said. “We are moving quickly to protect more than 1 million struggling households in Cambodia while helping Sri Lanka create jobs, attract investment, and expand trade.”

The ADB said its Trade, Investment, and Industry Development Program for Sri Lanka includes US$100 million in additional financing to help the country address economic pressures arising from the Middle East conflict.

The programme will support reforms to modernise trade systems, improve the competitiveness of small and medium-sized enterprises and attract investment into economic zones.

According to the ADB, the reforms are expected to help Sri Lankan businesses expand, increase exports and integrate into regional and global value chains while supporting private sector-led growth.

The programme will also focus on diversifying exports and strengthening Sri Lanka’s ability to withstand future external economic shocks.

The remaining US$250 million of the ADB package will support Cambodia’s Rapid Intervention for Stabilization of the Economy (RISE) Programme, aimed at protecting social spending and providing assistance to vulnerable households.

The ADB, established in 1966, is a multilateral development bank supporting sustainable and inclusive growth across Asia and the Pacific.