Sri Lanka Signs $200 Mn ADB Deal for Trade, Industry and Investment Growth

COLOMBO (News 1st); The Government of Sri Lanka has secured financial assistance amounting to USD 200 million from the Asian Development Bank (ADB) for the implementation of the Trade, Investment and Industry Development Program - Subprogram 1, providing support to the country's ongoing economic reform and development agenda.

According to the Ministry of Finance, Planning and Economic Development, the funding was arranged under the Policy Based Lending (PBL) facility following discussions between the Government and the ADB. 

The programme is aligned with Sri Lanka’s National Policy Framework 2025, which seeks to build a resilient, inclusive and sustainable economy while strengthening trade, investment and industrial growth. These priorities are also reflected in the country's Major Public Investment Projects for 2026-2028.

The Trade, Investment and Industry Development Program has been structured to address key development challenges through a comprehensive programmatic approach. The initiative consists of two components, with Subprogram 1 receiving financing of USD 200 million, while Subprogram 2 is expected to receive indicative financing of USD 100 million and is scheduled for implementation in 2028.

The Ministry noted that the financing comes at a critical time as Sri Lanka continues to navigate heightened economic uncertainty originating from the ongoing Middle East crisis and the impacts of climate-related shocks. The policy-based loan is expected to provide timely budgetary support to the Government and strengthen its ability to continue economic reforms and development initiatives.

As part of the arrangement, the ADB agreed to provide an additional USD 100 million in supplementary financing under Subprogram 1, effectively doubling the initially agreed funding amount from USD 100 million to USD 200 million. This increase reflects the Bank’s continued confidence in Sri Lanka’s reform programme and economic recovery efforts.

The Ministry of Finance, Planning and Economic Development serves as the executing agency for the programme. 

The loan agreement was signed on 18 August 2026 at the General Treasury in Colombo by Dr. Harshana Suriyapperuma, Secretary to the Ministry of Finance, Planning and Economic Development, on behalf of the Government of Sri Lanka, and Shannon Cowlin, Country Director of the ADB Sri Lanka Resident Mission, on behalf of the Asian Development Bank.