Press Releases
Financial Assistance from the Asian Development Bank (ADB) for the Second Integrated Road Investment Program (i Road 2)- Tranche 5
The Government of Sri Lanka has successfully concluded discussions with the Asian Development Bank (ADB) to mobilize a loan amounting to USD 90 million under the Second Integrated Road Investment Program (iRoad 2) – Tranche 5. The objective of this program is to enhance road transport efficiency by improving connectivity between selected rural communities and key socioeconomic centers, while also strengthening the institutional capacity of national road agencies.
The loan, extended from ADB will support the upgrading of approximately 500 kilometers of rural access roads to all-weather, climate-resilient standards that are inclusive and friendly to the elderly, women, children, and persons with disabilities. In addition, the program will facilitate the rehabilitation of about 21 kilometers of national roads, and the maintenance of 100 kilometers of rural access roads.
The Ministry of Transport, Highways and Urban Development serves as the Executing Agency, while the Road Development Authority (RDA) functions as the Implementing Agency for the program.
The Loan Agreement was formally signed on 31 October 2025 at the General Treasury, Colombo, between the Government of Sri Lanka and the Asian Development Bank. Dr. Harshana Suriyapperuma, Secretary, Ministry of Finance, Planning and Economic Development, signed on behalf of the Government of Sri Lanka, while Mr. Takafumi Kadono, Country Director, ADB Sri Lanka Resident Mission, signed on behalf of the Asian Development Bank.
Ministry of Finance, Planning and Economic Development 31 October 2025
Financial Assistance from the Asian Development Bank for the Strengthening Integrated Health Care and Governance for Universal Health Coverage Program
The Government of Sri Lanka had discussions with the Asian Development Bank to mobilize a loan amounting to USD 100 million coupled with an externally financed grant amounting to USD 6.9 million from the Pandemic Prevention, Preparedness and Response Trust Fund (Pandemic Fund) for the Implementation of the Strengthening Integrated Health Care and Governance for Universal Health Coverage Program under the Result-based Lending modality.
The above loan of USD 100 million under the Regular Ordinary Capital Resources of ADB will be obtained to support national strategic framework for the development of health services for improved efficiency and quality of secondary health services as first referral care for ensuring universal health coverage. Further, this program comprises of three outputs which will mainly focus on (i) enhancing first referral care services, (ii) enhancing pandemic prevention, preparedness, and response and (iii) improving health sector technical capacity and pharmaceutical supply chain management.
The Ministry of Health and Mass Media will mainly be the Executing and Implementing Agency while the nine Provincial Departments of Health Services will also act as Implementing Agencies of the above program.
The Loan and the Grant Agreements were signed on 17 October 2025 between the Government of Sri Lanka and the Asian Development Bank 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 Mr. Takafumi Kadono, Country Director, ADB Sri Lanka Residence Mission, on behalf of the Asian Development Bank.
Ministry of Finance, Planning and Economic Development
17 October 2025
Implementation of the Power System Strengthening and Renewable Energy Integration Project and the Energy Activities Support Facility (Small Expenditure Financing Facility) under the loan assistance of USD 230 million from Asian Development Bank
The Government of Sri Lanka had discussions with the Asian Development Bank to mobilize two project loans amounting to USD 230 million for the Implementation of the Power System Strengthening and Renewable Energy Integration Project and the Energy Activities Support Facility (Small Expenditure Financing Facility).
Out of the two loans mentioned above, a loan of USD 200 million under the Ordinary Capital Resources of ADB will be obtained to improve power supply efficiency and reliability under the Power System Strengthening and Renewable Energy Integration Project. It will mainly focus on strengthening and modernizing of climate-resilient transmission and distribution network to facilitate renewable integration and improving institutional capacity of power utilities, including enhanced renewable energy integration and grid management capabilities.
Further, a loan of USD 30 million will be obtained in two tranches of USD 15 million each under the Concessional Ordinary Capital Resources to complete the construction and post-construction activities of the Moragolla Hydropower Project under first tranche. The second tranche will be obtained later to implement the projects aimed to complement the renewable energy development.
The Ministry of Finance, Planning and Economic Development will issue two separate Treasury Guarantees for the above-mentioned loans. The Ceylon Electricity Board and the Lanka Electricity Company (Private) Limited will be the Executing and the Implementing Agencies of the Power System Strengthening and Renewable Energy Integration Project, and theCeylon Electricity Board will be the Executing and the Implementing Agency of the Energy Activities Support Facility (Small Expenditure Financing Facility).
The two separate Guarantee Agreements pertaining to the above-mentioned loans were signed on December 19, 2024 between the Government of Sri Lanka and the Asian Development Bank at the Treasury in Colombo by Mr. K. M. Mahinda Siriwardana, Secretary, Ministry of Finance, Planning and Economic Development, on behalf of the Government of Sri Lanka and Mr. Takafumi Kadono, Country Director, ADB Sri Lanka Residence Mission, on behalf of the Asian Development Bank while the Loan Agreements were signed by the Ceylon Electricity Board and the Lanka Electricity Company (Private) Limited with the Asian Development Bank relevant to each loan.
Department of External Resources
Ministry of Finance, Planning and Economic Development
19 December 2024
Japan Grants Rs. 687 Million for Sri Lankan Officials' Postgraduate Education under JDS Programme
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On 24th July, the Governments of Sri Lanka and Japan reaffirmed their commitment to strengthening bilateral relations by signing agreements to continue the Japanese Grant Aid for Human Resources Development Scholarship (JDS) Programme, which supports the professional development of young executive-level officials in Sri Lanka’s public service."
Under the initiative, the Government of Japan has allocated JPY 332 million (approximately Rs. 687 million) for this year’s programme. The JDS Programme, funded through Japan’s Official Development Assistance and implemented by the Japan International Cooperation Agency (JICA), offers scholarships for postgraduate studies in Japan. Since its inception in 2010, the programme has awarded 240 Master’s and 16 PhD scholarships to Sri Lankan executive-level officials.
Currently in its Fourth Framework (2022–2025), the JDS Programme is expected to contribute to Sri Lanka’s socio-economic development and strengthen bilateral ties between the two nations. The Government of Sri Lanka views this initiative as a key investment in public sector capacity-building and a cornerstone of the long-standing partnership with Japan.
The Exchange of Notes between the Governments of Sri Lanka and Japan, along with a Grant Agreement between the Government of Sri Lanka and JICA, was signed on 24th July 2025 at the Ministry of Finance, Planning and Economic Development. The documents were signed by Dr. Harshana Suriyapperuma, Secretary to the Treasury and the Ministry of Finance, on behalf of the Government of Sri Lanka, and His Excellency Mr. ISOMATA Akio, Ambassador of Japan to Sri Lanka, on behalf of the Government of Japan; and Mr. KURONUMA Kenji, Chief Representative of JICA, on behalf of JICA.
Asian Development Bank provides 2nd Policy-Based Lending of USD 200 million for the Financial Sector Stability and Reform Program - Subprogram 2.
As the result of discussions between the Asian Development Bank (ADB) and the Government of Sri Lanka, Two policy-based loans (PBL) have been developed to implement the Financial Sector Stability and Reform Program in order to create a stable financial system that provides access to finance for businesses in various sectors of the economy.
The program adopts a programmatic modality with two subprograms of USD 200 million each. It will support implementing multi-year policy reforms, including immediate reforms to enhance the crisis management regulatory framework and stabilize the financial sector under Subprogram 01 and reforms to build a resilient and inclusive financial system under Subprogram 02.
Under the above program, the first PBL of USD 200 million was fully disbursed in December 2023, following the successful completion of all required prior policy actions under Subprogram 01 of the program. Since the relevant agencies have also successfully achieved all pre-policy actions related to Subprogram 02, the relevant entire USD 200 million loan proceeds will soon be disbursed to the Treasury. The loans provide under ADB concessionary Ordinary Capital Resources with a 25-year term, including a 5-year grace period, and an interest rate of 2.0% per year.
The Ministry of Finance, Planning and Economic Development will be the executing agency of the above program and implemented the policy actions in collaboration with the Central Bank of Sri Lanka and other relevant institutions.
Today, the loan agreement for policy-based lending for Subprogram 02 was signed between the Government of Sri Lanka and the Asian Development Bank at the Treasury in Colombo. Mr. K. M. Mahinda Siriwardana, Secretary, Ministry of Finance, Planning and Economic Development and Mr. Takafumi Kadono, Country Director, ADB Sri Lanka Residence Mission, placed signatures on behalf of the Government of Sri Lanka and the Asian Development Bank respectively.
Department of External Resources Ministry of Finance, Planning and Economic Development 27 November 2024