The Sri Lankan government is set to enter into a US$ 100 million loan agreement with the Asian Development Bank (ADB) to support economic recovery and reforms, following the completion of formal loan negotiations.
The Cabinet of Ministers has approved a proposal submitted by President Anura Kumara Dissanayake, in his capacity as Minister of Finance, Planning and Economic Development, to proceed with the loan agreements.
The financing will consist of US$ 50 million in policy-based lending and US$ 50 million in investment financing, provided through the ADB’s Ordinary Capital Resources.
The funds will be utilised to implement the Macroeconomic Recovery Sector Development Programme for Promoting Resilient and Inclusive Economic Opportunities.
According to the government, the Department of External Resources has completed formal negotiations with the ADB regarding the proposed financing.
The latest decision follows Cabinet approval granted on September 7, 2026, to allocate US$ 100 million towards the economic recovery programme.
Earlier, on March 16, 2026, the Cabinet approved obtaining US$ 620 million in policy-based loans from the ADB under five subprogrammes to advance Sri Lanka’s economic reform agenda.
The broader financing arrangement is intended to complement Sri Lanka’s ongoing reforms under the International Monetary Fund’s (IMF) Extended Fund Facility (EFF) programme. (Newswire)
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