Sri Lanka secures USD 300 mn ADB support to boost economic stability

Colombo, 18 Nov (PTI) Sri Lanka on Tuesday said it has secured agreements to obtain USD 300 million in financial assistance from the Asian Development Bank (ADB) to support economic stability.

The funds will be disbursed in three tranches of USD 100 million each for financial sector stability and reform, strengthening macroeconomic resilience and transparency, and a sustainable tourism sector development programme, the finance ministry said in a press release.

The financial sector stability and reforms programme is aimed at strengthening the regulatory capacity of the Central Bank of Sri Lanka, while the macroeconomic resilience programme will support broader macroeconomic and public financial management reforms, the ministry said.

The sustainable tourism development initiative will include both a policy-based loan and an investment loan.

Part of the funds will be allocated to develop and expand tourism potential in the eastern port district of Trincomalee and around the UNESCO World Heritage Site of Sigiriya in the Central Province.

Sri Lanka has been working to stabilise its economy after a severe financial crisis in 2022 that led to depleted foreign reserves, high inflation, loan defaults and widespread shortages.

The country is implementing reforms under an International Monetary Fund (IMF)-supported programme while seeking support from multilateral agencies such as Manila-headquartered ADB and the World Bank to restore macroeconomic stability and revive growth. PTI CORR SCY SCY