Sri Lanka thanks ADB for “being a massive strength”

Sri Lanka’s Alternate Governor in ADB and Treasury Secretary Mahinda Siriwardana addresses business session of ADB Board of Governors 

• Stresses ADB support helped SL to enhance stability and set stage for economic recovery and growth after back-to-back shocks in 2022
• At ADB’s 58th Annual Meeting advocates country-focused approaches to match global development agenda

By Nisthar Cassim in Milan, Italy

Sri Lanka on Monday saluted the Asian Development Bank (ADB) for “being a massive strength” during and post-crisis thereby enabling stability followed by recovery and growth.

The expression of appreciation was at the opening day of ADB’s 58th Annual Meeting in Milan, Italy. “The Government of Sri Lanka is thankful to ADB for the assistance and guidance provided to Sri Lanka in the country’s economic recovery process as well as in the economic stabilisation process and for being a massive strength to us throughout our most difficult phase in 2022,” Sri Lanka’s Alternate Governor in ADB and Treasury Secretary Mahinda Siriwardana said during the meeting.

Siriwardana was representing Sri Lanka at the ADB meeting in the absence of President and Finance Minister Anura Kumara Disanayake and/or State Minister of Finance Dr. Harshana Suriyapperuma.

Siriwardana in his remarks recalled that back-to-back shocks and some policy missteps degenerated the macroeconomic conditions, resulting in major hardships across all sectors of the economy and society as a whole.

The ADB Annual Meeting which concludes today was told that Sri Lanka took decisive remedial measures during the last 3 years and decided to undertake difficult yet necessary reforms as corrective measures to emerge from an unbearable economic crisis.

“We entered into a 4-year, extended fund facility with the International Monetary Fund in March 2023 that supported our reform program, along with reform programs supported by ADB and the World Bank. The reforms that have been put in place by the Government during the past two years have been able to restore a significant level of stabilisation in the economy,” said Siriwardena at the ADB Annual Meeting attended by around 5,000 representatives from 69 member countries including 50 from the Asia Pacific region.

The Treasury Secretary said the improved macroeconomic conditions are visible in terms of improved fiscal conditions, recovery of foreign exchange reserves, improved external balances as evident in the current account surplus and appreciation of the currency, and the rapid decline in inflation to single digit levels.

“In this backdrop, the assistance being provided by ADB in several reform areas, that the Government has identified, is instrumental in the country’s stabilisation measures and setting the stage for economic recovery and growth,” emphasised Siriwardena speaking at the Business Session of the ADB’s Board of Governors.

In 2024, ADB’s assistance to Sri Lanka amounted to $ 808 million including three policy-based loans in the amount of $ 400 million to support the State Budget. ADB Country Director for Sri Lanka Takafumi Kadono told journalists in Colombo in April that a similar or higher support is envisaged this year.

In his remarks Siriwardena also acknowledged ADB’s support extended to its members in Asia and the Pacific, empowering them through various ADB products and also further strengthening the support through several initiatives including enhanced lending.

He pointed out that the Asia and Pacific region continues to face many challenges and rebounding from constant shocks is not that easy. “Therefore, we need to design new strategies jointly to tackle future issues and risks posed by various challenges such as inequality and poverty along with dangers arising from climate devastation, while paying attention to uncertainties in the region due to conflict and volatile commodity prices,” he said,

“I believe, ADB, as a regional development bank, has a major role to play in preparing its members to face the global development challenges providing adequate and updated knowledge and expertise to confront these problems and ensure sustainable development in an inclusive and balanced environment. Many developing member countries find difficulties in moving ahead parallel to global trends in the backdrop of rapidly accelerating technological changes. Country focused approaches to match the global development agenda have to be promoted through sovereign and non-sovereign operations of ADB,” Siriwardena told at the ADB Annual Meeting – the theme of which was “Sharing Experience, Building Tomorrow.” 

The Treasury Secretary in his remarks also assured Sri Lanka’s fullest cooperation to achieve ADB’s vision and expects ADB to continue to play its catalytic role as a financing as well as a knowledge partner for region, maximising the development impact of ADB through support in strategic interaction with the members and strengthening collaboration with members.

ADB President Masato Kanda in his remarks at the Opening Session of ADB’s 58th Annual Meeting announced enhanced financial firepower of $ 100 billion to boost the region’s resilience in successfully overcoming challenges. (See https://www.ft.lk/front-page/ADB-gets-100-b-financial-firepower-to-boost-region-s-resilience/44-776231)

The Annual Meeting is an opportunity for ADB shareholding governments to provide guidance to management and staff on administrative, financial, and operational issues. Over the years, ADB Annual Meetings have become a premier forum for the discussion of economic and social development issues in Asia and the Pacific.