Wednesday Mar 25, 2026
Wednesday Mar 25, 2026
Wednesday, 25 March 2026 00:30 - - {{hitsCtrl.values.hits}}
Visiting ADB President Masato Kanda (left) and President Anura Kumara Dissanayake
The Asian Development Bank (ADB) has agreed to increase the allocation approved for Sri Lanka for this year from $ 380 million to $ 480 million and to promptly release $ 200 million in view of the prevailing supply shocks caused by the Middle East war, the President’s Office said yesterday.
Earlier this month, the ADB had said that it was ready to provide more than $ 1 billion annually to Sri Lanka from 2026 to 2029.
A statement from the President’s Media Division said the ADB expressed this commitment at a meeting between vising ADB President Masato Kanda and President Anura Kumara Dissanayake yesterday.
Extensive discussions were held on how the ADB could support Sri Lanka in achieving its future development objectives.
The ADB President commended the Government’s efforts to maintain economic stability despite the post-disaster context and the prevailing conflict situation in the Middle East. Kanda had also assured that the ADB stands ready to provide any necessary assistance to restore infrastructure damaged by Cyclone Ditwah.
President Dissanayake expressed appreciation for the assistance extended thus far by the ADB in response to the Cyclone Ditwah disaster, as well as for its broader development cooperation with Sri Lanka. The President also noted that maintaining economic stability while achieving economic growth remains a key objective of the present Government.
Kanda stated that he had the opportunity to observe first-hand the damage caused by Cyclone Ditwah and affirmed the ADB’s readiness to support program aimed at preventing similar situations in the future, including the protection of water systems in the central highlands.
The ADB delegation included South Asia Department Director General Sona Shrestha, Office of the President Senior Adviser Keiichiro Inui, Senior Adviser Manisha Pradhananga and other senior officials.
Last week, the Cabinet approved plans to secure $ 620 million from the ADB for five sub-programs aimed at accelerating the reform agenda and supporting economic recovery. Of this, $ 100 million is allocated for a Trade, Investment and Industrial Development Program, while $ 220 million will support the development of a stronger and more inclusive financial environment for micro, small and medium-sized enterprises (MSMEs). A further $ 100 million each has been earmarked for the Water Supply and Sanitation Rehabilitation Program, the Development Program to Build Resilience and Enable Inclusive Recovery, and the Agricultural Value Chain Financing Commercialisation Sector Development Project.
