The Cabinet of Ministers has approved a proposal to secure US$620 million in policy-based financing from the Asian Development Bank (ADB) for 2026, aimed at advancing the country’s reform program.
The proposal was submitted by the President in his capacity as Minister of Finance, Planning and Economic Development.
The funding is aligned with Sri Lanka’s ongoing reform agenda under the International Monetary Fund’s Extended Fund Facility (EFF) program. The ADB has agreed to provide the financing to support key structural and economic reforms.
According to the government, the funds will be disbursed across five sub-programs:
- US$100 million for the Trade, Investment and Industrial Development Program
- US$220 million for a program to strengthen and expand financial access for micro, small and medium enterprises (MSMEs)
- US$100 million for the Water Supply and Sanitation Reform Program
- US$100 million for a resilience-building and inclusive recovery support program
- US$100 million for the Agricultural Value Chain Financing and Agribusiness Development Project
The government said that the financing is intended to facilitate economic stabilization, improve financial inclusion, and support sectoral development in line with ongoing policy reforms. (Newswire)