November, 17, 2025
The Government of Sri Lanka had discussions with the Asian Development Bank (ADB) to mobilize USD 300 million under the following Policy Based Loans (PBLs) and the Investment Loan.
USD 100 million (Policy Based Loan)
USD 100 million (Policy Based Loan)
USD 100 million (Policy Based Loan + Investment Loan)
Financial Sector Stability and Reforms Program (Subprogram 3) was designed to complete the multiyear structural reforms, and to strengthen the regulatory capacity of Central Bank of Sri Lanka (CBSL). Under this program, the country is receiving USD 100 million from ADB’s Concessional Ordinary Capital Resources following the completion of 11 policy actions aimed at strengthening the stability and governance of the banking sector, strengthening the asset quality of the banking sector and deepening sustainable and inclusive finance.
Strengthening Macroeconomic Resilience and Transparency Program (Subprogram 1) supported for Sri Lanka’s macroeconomic stabilization and public financial management (PFM) reform agenda. Under this program, the country is receiving USD 100 million from ADB’s Concessional Ordinary Capital Resources following the completion of 11 policy actions aimed at improving public expenditure management, improving domestic resource mobilization and strengthening the enabling environment private sector participation.
Sustainable Tourism Sector Development Program (Subprogram 1) comprises of a Policy Based Loan (PBL) and an investment loan component. Under the PBL component, the country is receiving USD 70 million from the ADB’s concessional Ordinary Capital resources. It is intended to strengthen the sector by implementing structural reforms, capacity-building initiatives, and policy revisions aimed at promoting greater private sector participation and enhancing overall institutional effectiveness through the PBL component.
The country is receiving USD 30 million under the investment component from ADB’s Ordinary Capital Resources to develop and expand the tourism potential and carrying capacity of the Trincomalee and Dambulla (including Sigiriya area) destinations. In addition, this component will focus on the activities to manage tourist congestion, extend the average length of stay, and increase the tourism sector’s contribution to the regional economy. The Ministry of Transport, Highways and Urban Development serves as the Executing Agency, and Implementing Agency for the investment activities supported under the program.
The Ministry of Finance, Planning and Economic Development serves as the Executing Agency for the aforementioned PBLs.
The above Loan Agreements were signed on 17 November 2025 between the Government of Sri Lanka and the Asian Development Bank at the Treasury in Colombo by Dr. Harshana Suriyapperuma, Secretary, Ministry of Finance, Planning and Economic Development, on behalf of the Government of Sri Lanka and Mr. Takafumi Kadono, Country Director, ADB Sri Lanka Residence Mission, on behalf of the Asian Development Bank.
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