Tuesday Nov 18, 2025
Tuesday Nov 18, 2025
Tuesday, 18 November 2025 03:52 - - {{hitsCtrl.values.hits}}
Treasury Secretary Dr. Harshana Suriyapperuma (right) and ADB Sri Lanka Country Director Takafumi Kadono exchanging the agreements at the Finance Ministry yesterday
Sri Lanka yesterday finalised three major loan agreements with the Asian Development Bank (ADB) amounting to $ 300 million, strengthening the country’s financial sector reforms, macroeconomic stabilisation agenda and long-term tourism development plans.
The agreements were signed at the Finance Ministry in Colombo by Treasury Secretary Dr. Harshana Suriyapperuma and ADB Sri Lanka Country Director Takafumi Kadono.
The funding package spans two policy-based loans (PBLs) and an investment loan, each designed to advance critical reform programs across key sectors. Under the Financial Sector Stability and Reforms Program (Subprogram 3), Sri Lanka will receive $ 100 million after completing 11 policy actions aimed at strengthening banking sector stability, improving regulatory capacity at the Central Bank of Sri Lanka and deepening access to sustainable and inclusive finance. This marks the final stage of a multiyear reform effort targeting systemic financial resilience.
Another $ 100 million will flow through the Strengthening Macroeconomic Resilience and Transparency Program (Subprogram 1), which supports the Government’s ongoing stabilisation efforts and reforms in public financial management. The disbursement follows the completion of 11 policy actions focused on improving expenditure management, enhancing domestic revenue mobilisation and creating a more enabling environment for private-sector participation.
The remaining $ 100 million will support the Sustainable Tourism Sector Development Program (Subprogram 1), which includes both a PBL and an investment component. Through the policy-based element, Sri Lanka will receive $ 70 million to advance structural reforms in the tourism sector, implement capacity-building initiatives and revise policies to encourage stronger private-sector involvement and better institutional performance. The $ 30 million investment component will target the development and expansion of tourism capacity in Trincomalee and Dambulla, including the Sigiriya region. This investment aims to address congestion at key sites, increase the average length of stay and boost regional economic contributions through enhanced tourism infrastructure and destination management.
The Ministry of Finance, Planning and Economic Development will serve as the executing agency for the policy-based loans, while the Transport, Highways and Urban Development Ministry will oversee the investment activities linked to tourism development. The Government expects the combined programs to accelerate reforms, strengthen resilience across multiple sectors and unlock new avenues for sustainable economic growth.
