The Government of Sri Lanka held discussions with the Asian Development Bank (ADB) to mobilize a policy-based loan amounting to USD 100 million to implement the Power Sector Reforms and Financial Sustainability Program (Subprogram 2).

This policy-based lending program will support the establishment of independent and financially sustainable electricity utilities. It will also support the streamlined and accelerated development of renewable energy sources for electricity generation under the reform areas, according to the Ministry of Finance, Planning and Economic Development.

The Ministry of Energy, in collaboration with the Ceylon Electricity Board, Sri Lanka Sustainable Energy Authority, Lanka Electricity Company Pvt. Ltd., and the Public Utilities Commission of Sri Lanka, has successfully achieved all pre-policy actions related to Subprogram 2.

Accordingly, the relevant loan proceeds of USD 100 million will be disbursed to the Treasury once the loan agreement is declared effective. Further, the Government held discussions with ADB to secure a USD 3 million grant for the Cyclone Ditwah Emergency Response Project, as Sri Lanka has been experiencing a severe disaster situation caused by Cyclone Ditwah, resulting in widespread floods, landslides, and other cyclone-related impacts across the country.

The above USD 3 million grant assistance comes under the Asia Pacific Disaster Response Fund of ADB and will be obtained for post-disaster relief and rehabilitation work due to the impacts of Cyclone Ditwah.

Accordingly, this grant-funded project will support the provision of essential life-preserving services for communities affected by the cyclone, the statement said.

Grant proceeds will be used for activities including, but not limited to, emergency rescue equipment, medical supplies and kits, food supplies, water and sanitation systems, transitional shelter materials, hygiene kits, debris-clearance equipment, aviation fuel, and communication equipment.

Accordingly, the above-mentioned loan and grant agreements were signed at the Treasury in Colombo by Dr. Harshana Suriyapperuma, Secretary, Ministry of Finance, Planning and Economic Development, on behalf of the Government of Sri Lanka, and Mrs. Cholpon Mambetova, Country Operations Head, ADB Sri Lanka Resident Mission, on behalf of the Asian Development Bank, on 05 December 2025.