ADB Sri Lanka – Asian Development Bank in Sri Lanka

ADB Sri Lanka – Asian Development Bank (ADB) in Sri Lanka

The Asian Development Bank (ADB) has been a key development partner for Sri Lanka since the country became a founding member of the institution. Over the decades, ADB has played a significant role in supporting Sri Lanka’s economic and social development, especially in light of recent economic challenges.

Overview of ADB’s Engagement in Sri Lanka

• ADB has committed 499 public sector loans, grants, and technical assistance packages to Sri Lanka, totaling $12.7 billion as of April 2024.
• In 2023 alone, ADB disbursed $908 million and committed $610 million in new loans, along with $5.5 million in technical assistance.
• ADB’s operations in Sri Lanka are managed through its resident mission in Colombo, established in 1997.

Strategic Focus Areas – ADB Sri Lanka

2024–2028 Country Partnership Strategy

ADB’s current Country Partnership Strategy (CPS) for Sri Lanka (2024–2028) is structured around three main objectives:

• Strengthening public financial management (PFM) and governance
• Fostering private sector development (PSD) with an emphasis on green growth
• Improving access to climate-smart public services and deepening social inclusion

Crosscutting priorities include:

• Climate action, disaster resilience, and environmental sustainability
• Gender equality and social inclusion (GESI)
• Governance, capacity development, and digitalization

Key Sectors and Projects of ADB Sri Lanka

ADB supports a broad range of sectors in Sri Lanka, including:

• Macroeconomic Stability and Economic ADB is a close partner of Sri Lanka in economic recovery from recent crises. A substantial proportion of their lending is policy-based, promoting reforms in structure and policy in key sectors.
• Public Financial Management and Governance: Strengthening these areas is a core objective of ADB’s assistance.
• Infrastructure: Water supply, transport, and urban development, especially in Colombo.
• Social Sectors: Education, health (such as the Health System Enhancement Project), and social protection.
• Private Sector and SME Development: Special loan schemes, such as those supporting agriculture, tourism, manufacturing, technology, and export-oriented businesses, with specific provisions for women-led enterprises.
• Climate and Environment: Projects aimed at climate resilience, environmental sustainability, and disaster risk reduction.

Current Strategy and Allocations:

• Country Partnership Strategy (CPS) 2024–2028: This is the framework of operations under which ADB functions in Sri Lanka, emphasizing restoring macroeconomic stability, supporting sustainable recovery, building resilience, and reviving growth.
• Financial Commitments: As of 31 December 2024, 499 loans and grants to the tune of $12.7 billion in public sector loans, grants, and technical assistance had been committed to Sri Lanka by ADB. The portfolio in sovereigns presently consists of 34 loans and 1 grant amounting to $3.89 billion
• Annual Allocations: ADB has announced a preliminary allocation of $900 million for Sri Lanka in 2025, following $808 million in approved projects in 2024.

ADB Sri Lanka Support for Vulnerable Groups

ADB’s assistance emphasizes protecting poor and vulnerable populations, especially during periods of economic crisis. There is a particular focus on mainstreaming gender equality and social inclusion across all operations.

Examples of ADB-Funded Initiatives

• Health System Enhancement Project: Aimed at strengthening primary health care services in Sri Lanka.
• SME Loan Schemes: ADB-funded loans through local banks to support viable projects in priority sectors, with favorable terms for women-led businesses.

Examples of Projects and Initiatives:

• Energy Sector: Grid reliability enhancement, renewable energy integration mix enhancement (e.g., rooftop solar power generation), and support for sustainability of transmission and distribution facilities.
• Water Sector: Support for programs like the Mahaweli Water Security Investment Program and initiatives to boost sustainability and climate resilience in the water sector.
• Financial Sector: Loans to strengthen financial sector reforms and enhance access to finance, especially for Small and Medium-Sized Enterprises (SMEs), including those led by women.
• Food Security and Livelihood Recovery: Emergency assistance projects to ensure food access and protect livelihoods of vulnerable populations.
• Trade and Supply Chain Finance Program (TSCFP): Providing guarantees and loans to banks to support trade, particularly for essential commodities like food, fuel, and medicines.

Contact Information for ADB Sri Lanka Resident Mission (SLRM):

• Address: 23, Independence Avenue, Colombo 7, Sri Lanka
• Tel: +94 11 4455455 / 2674499
• Fax: +94 11 4455499 / 11-2674488
• Office Hours: 8:30 a.m. to 5:00 p.m. (Monday to Friday)
• Country Director: Takafumi Kadono (as of latest information)

Conclusion

ADB continues to be a major partner for the country. It mobilizes financial and technical resources and provides policy support for Sri Lanka to achieve sustainable and inclusive growth and recovery. The period 2024–2028 will concentrate on restoring macroeconomic stability, nurturing green growth, and ensuring that development can finally be enjoyed by all segments of society.