FINANCIAL CHRONICLE – The Asian Development Bank (ADB) is prepared to provide an additional 100 million dollars in budget support as part of a financial package aimed at helping Sri Lanka mitigate the economic and financial impacts stemming from the conflict in West Asia, according to ADB President Masato Kanda.
Sri Lanka has become the first member country to formally request such assistance. This request raises ADB’s total planned budget support for Sri Lanka in 2026 to 480 million dollars.
Kanda emphasized, “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 his visit to Sri Lanka, Kanda traveled to the Kegalle District to assess the damage caused by Cyclone Ditwah. In response to urgent reconstruction needs, ADB is fast-tracking a 200 million dollar Emergency Assistance Loan aimed at restoring vital transport networks and irrigation canals while also supporting affected livelihoods.
Kanda also visited Colombo Port, where he observed how ADB-financed infrastructure projects, including the Colombo Port Expansion and Port Access Elevated Highway, connect Sri Lanka to essential supply chains. The global lender stated that strengthening port capacity, connectivity, and logistics performance will be crucial for enhancing Sri Lanka’s role in regional and global trade.
ADB is increasing its annual program to over 1 billion dollars to support ongoing structural reforms, resilient infrastructure, and human capital development. Kanda held discussions with private sector CEOs to explore methods for unlocking private capital, highlighting that public resources alone cannot meet the extensive investment needs of the country.
ADB noted that it is focusing on preparing bankable projects and utilizing risk-sharing instruments to foster a more competitive, export-oriented economy for the people of Sri Lanka. (Colombo/Mar26/2026)
