ADB provides $100 m support to help Sri Lanka

Asian Development Bank (ADB) President Masato Kanda met with Sri Lankan President Anura Kumara Dissanayake in Colombo this week and announced that ADB stands ready to provide US$100 million in additional budget support as part of a financial package to help countries mitigate the economic and financial impacts resulting from the conflict in the Middle East.

Sri Lanka is the first member to formally request such assistance. This proposal increases ADB’s total planned budget support in Sri Lanka for 2026 to $480 million.

“Sri Lanka is at a turning point, moving from crisis recovery toward growth and a more resilient economy,” Mr. Kanda said. “However, the conflict in the Middle East is adding new pressures for Sri Lanka, including rising oil prices, supply chain disruptions, and falling remittances. The additional support from ADB will help safeguard the broader economy against these external shocks.”

During this visit, Mr. Kanda travelled to Kegalle District to witness the damage caused by Cyclone Ditwah. To address urgent reconstruction needs, ADB is fast-tracking a $200 million Emergency Assistance Loan to restore vital transport networks and irrigation canals while supporting affected livelihoods, according to a ADB media release.

Mr. Kanda also visited Colombo Port, where he viewed how ADB-financed infrastructure, including the Colombo Port Expansion and Port Access Elevated Highway, connects Sri Lanka to supply chains. Strengthening port capacity, connectivity, and logistics performance will be key to enhancing Sri Lanka’s role in regional and global trade.

Mr. Kanda also met with private sector CEOs to identify ways to unlock private capital. He noted that public resources alone cannot meet the scale of the country’s investment needs.