The Asian Development Bank (ADB) has approved a $100 million loan to support Sri Lanka in advancing critical structural reforms within its financial sector, focusing on stronger governance, policy continuity, and wider financial inclusion. The initiative aims to enhance the sector’s resilience and ensure long-term financial stability in the wake of the country’s recent economic challenges.
This new financing builds on two earlier ADB programs worth a combined $400 million, implemented since Sri Lanka’s 2022 economic crisis. The latest phase seeks to consolidate those reform efforts and reinforce sustainable progress in strengthening the financial system’s foundations.
“ADB is proud to support Sri Lanka’s continued efforts in strengthening the financial sector,” said ADB Country Director for Sri Lanka, Takafumi Kadono. “This initiative builds on earlier banking sector reforms and aims to broaden access to finance for micro, small, and medium-sized enterprises, with a strong focus on empowering women-led businesses. We remain committed to partnering with the government to promote long-term financial stability and sustainable development.”
The program will enhance the stability, capital adequacy, risk management, and governance frameworks of the banking sector, while empowering financial regulators to better manage potential crises. By reinforcing these systems, the initiative aims to boost public confidence in the financial system and safeguard the interests of depositors and consumers.
Additionally, the program emphasizes expanding financial inclusion and sustainability to strengthen credit flows to end-borrowers and support economic activity across multiple sectors. It aligns closely with Sri Lanka’s national strategy to maintain financial stability, ensure banking sector resilience, and improve access to finance for small businesses and entrepreneurs.
Through this $100 million support, ADB reaffirms its commitment to helping Sri Lanka build a more stable, inclusive, and resilient financial system that can drive sustainable economic recovery and long-term growth.
