The Cabinet of Ministers has approved an agreement with the Asian Development Bank (ADB) to obtain a US$100 million loan to support Sri Lanka’s economic recovery and promote resilience and inclusive economic opportunities.
The approval was granted at the Cabinet meeting held on September 7, 2026, as part of the country’s broader reform agenda being implemented alongside the International Monetary Fund’s (IMF) Extended Fund Facility (EFF) programme.
The proposed financing is part of a wider US$620 million policy-based lending package to be obtained from the ADB under five sub-programmes to advance Sri Lanka’s reform agenda. Cabinet approval for the overall financing and loan negotiations was granted on March 16, 2026.
The US$100 million loan will comprise two components: a US$50 million policy-based loan and a US$50 million investment loan, funded through the ADB’s ordinary capital resources.
The Department of External Resources has completed formal loan negotiations with the ADB.
The Cabinet approved the proposal submitted by the President in his capacity as Minister of Finance, Planning and Economic Development to enter into the necessary agreements with the ADB to secure the financing.
