ECONOMYNEXT – Manila based Asian Development Bank is ready to finance Sri Lanka with policy based loans, investment loans and perhaps private sector funding, as long as the country maintains debt sustainability and reforms, Country Director Takafumi Kadono said.
Last year the ADB had provided 808 million dollars, and is willing to provide more project financing due to better than expected stabilization and economic recovery.
“Going forward, ADB has pipelined a similar volume in budget support for 2025, in line with the IMF program, to continue supporting the government’s ambitious reforms in various areas including energy, finance, tourism, trade, public financial management,” Country Director Takafumi Kadono said.
“As the economy recovers and the government’s fiscal position strengthens, we will expand our support to investment projects to ensure the government’s growth and development objectives are achieved.
“While supporting the traditional sectors that ADB has been involved in over decades in Sri Lanka, such as energy, water and sanitation, education, skills development and transport, the new pipeline of lending and non-lending projects is expected to include new areas such as tourism and digitalization, in line with evolving government priorities.”
The ADB is expected to provide around 400 million dollars in budget support (policy based loans).
The ADB was also watching changes to the Electricity Act, which was reformed under a previous ADB policy loan.
For the ADB to continue funding the Ceylon Electricity Board, key changes that modernized the law and cost-based pricing had to be maintained. (Colombo/Apr10/2025)