Press Releases
USD 100 million Loan Assistance and USD 3 million Grant assistance from the Asian Development Bank
The Government of Sri Lanka had 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.
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 had 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. 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.
Ministry of Finance, Planning and Economic Development
05 December 2025
Entering into an Agreement on Debt Restructuring between Government of Denmark and the Government of Sri Lanka in relation to the External Debt Restructuring Process
Entering into the bilateral Agreement with the Government of Denmark in relation to the External Debt Restructuring Process marks a significant milestone and reflects the Government of Sri Lanka’s continued commitment to conclude the debt restructuring process successfully in order to restore debt sustainability and thereby revamp Sri Lanka’s economy.
Following bilateral discussions after the conclusion of the MoU with the Official Creditor Committee (OCC), the Government of Denmark has agreed to extend a debt relief measure by rescheduling the outstanding debts.
The Bilateral Agreement was signed by Dr. Harshana Suriyapperuma, Secretary of the Ministry of Finance, Planning and Economic Development, on behalf of the GoSL, and Mr. Lars Løkke Rasmussen, Minister for Foreign Affairs, on behalf of the Government of Denmark.
The estimated rescheduled debt under this agreement amounts to USD 39 million.
Entering into the Agreement will certainly pave the way to developing further the deep and longstanding bilateral relationships between the Government of Denmark and the Government of Sri Lanka. The Government of Sri Lanka extends its sincere appreciation to the Government of Denmark for its continued support and cooperation.
Ministry of Finance, Planning and Economic Development
Colombo 01
On November 18, 2025
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 of USD 300 Million from the Asian Development Bank (ADB)
The Government of Sri Lanka had discussions with the Asian Development Bank (ADB) to mobilize USD 300 million under the following Policy Based Loans (PBLs) and the Investment Loan.
1. Financial Sector Stability and Reforms Program (Subprogram 3) USD 100 million (Policy Based Loan)
2. Strengthening Macroeconomic Resilience and Transparency Program (Subprogram 1) USD 100 million (Policy Based Loan)
3. Sustainable Tourism Sector Development Program (Subprogram 1) USD 100 million (Policy Based Loan + Investment Loan)
Financial Sector Stability and Reforms Program (Subprogram 3) was designed to complete the multiyear structural reforms, and to strengthen the regulatory capacity of Central Bank of Sri Lanka (CBSL). Under this program, the country is receiving USD 100 million from ADB’s Concessional Ordinary Capital Resources following the completion of 11 policy actions aimed at strengthening the stability and governance of the banking sector, strengthening the asset quality of the banking sector and deepening sustainable and inclusive finance.
Strengthening Macroeconomic Resilience and Transparency Program (Subprogram 1) supported for Sri Lanka’s macroeconomic stabilization and public financial management (PFM) reform agenda. Under this program, the country is receiving USD 100 million from ADB’s Concessional Ordinary Capital Resources following the completion of 11 policy actions aimed at improving public expenditure management, improving domestic resource mobilization and strengthening the enabling environment private sector participation.
Sustainable Tourism Sector Development Program (Subprogram 1) comprises of a Policy Based Loan (PBL) and an investment loan component. Under the PBL component, the country is receiving USD 70 million from the ADB’s concessional Ordinary Capital resources. It is intended to strengthen the sector by implementing structural reforms, capacity-building initiatives, and policy revisions aimed at promoting greater private sector participation and enhancing overall institutional effectiveness through the PBL component.
The country is receiving USD 30 million under the investment component from ADB’s Ordinary Capital Resources to develop and expand the tourism potential and carrying capacity of the Trincomalee and Dambulla (including Sigiriya area) destinations. In addition, this component will focus on the activities to manage tourist congestion, extend the average length of stay, and increase the tourism sector’s contribution to the regional economy. The Ministry of Transport, Highways and Urban Development serves as the Executing Agency, and Implementing Agency for the investment activities supported under the program.
The Ministry of Finance, Planning and Economic Development serves as the Executing Agency for the aforementioned PBLs.
The above Loan Agreements were signed on 17 November 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 November 2025
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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