Sri Lanka’s cabinet has granted approval for a $100 million increase to a loan from the Asian Development Bank (ADB), according to Minister Nalinda Jayatissa. During a press briefing, Jayatissa announced that the ADB has consented to augment its supplementary financing package by this amount.
Earlier, the cabinet had sanctioned a loan of $380 million from the ADB, designated for a policy-based loan facility set for 2026. Of this total, $100 million was earmarked for a program focused on trade, investment, and industrial development (Sub Programme 1), as stated by Jayatissa.
In light of the ongoing Middle East crisis and various climate-related disasters, the global financial institution has now agreed to raise the loan allocation for this initiative to $200 million. Responding to concerns regarding increasing national debt, Jayatissa emphasized that the government is committed to utilizing these loans for developmental purposes and intends to meet repayment obligations punctually.
