The Asian Development Bank (ADB) has approved a US$100 million loan to support structural reforms in Sri Lanka’s financial sector, aiming to strengthen governance, continue policy reforms, and enhance financial inclusion.
This loan builds on two previous ADB lending programs, totaling US$400 million, launched after Sri Lanka’s economic crisis in 2022. It will focus on consolidating past reform efforts, ensuring the long-term sustainability of measures designed to improve the resilience of the financial sector and maintain effective service delivery.
“The 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 women-led businesses. We remain committed to working with the government to promote long-term financial stability and drive sustainable development.”
The program will enhance stability, capital adequacy, risk management, and governance in the banking sector, strengthening the capacity of financial regulators to manage potential crises. These measures are expected to boost public confidence in the financial system while safeguarding public interests. Additionally, the program will promote financial inclusion and sustainability, improving financial intermediation and facilitating the flow of credit to end-borrowers.
The overarching objective of the program aligns with Sri Lanka’s strategy to maintain financial sector stability amid ongoing economic challenges, while ensuring the banking sector’s resilience and expanding access to finance across multiple sectors of the economy.
Founded in 1966, the ADB is a leading multilateral development bank owned by 69 members, 50 from the Asia-Pacific region. It supports inclusive, resilient, and sustainable growth by leveraging innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard the environment.
