• The ADB approved a $200 million loan to strengthen Sri Lanka's financial sector by enhancing banking sector governance, improving asset quality, supporting MSMEs with incentives, promoting financial inclusion for women through targeted policies and digitization, and ensuring financial stability with improved regulatory supervision and stress testing models.

The Asian Development Bank (ADB) has approved a $200 million policy-based loan to strengthen Sri Lanka’s financial sector, focusing on banking sector governance, asset quality, and financial inclusion for women and vulnerable groups. This is the second subprogram under ADB's Financial Sector Stability and Reforms Program, building on stabilization measures initiated in 2023. The program aims to enhance the Central Bank’s regulatory supervision with improved early warning systems, stress testing models, and guidance on credit concentration risks. Incentives will be provided to banks for supporting micro, small, and medium-sized enterprises (MSMEs), while women-led businesses will receive special loans and improved access to finance through a policy framework and digitized personal information. These reforms aim to ensure financial stability, resilience, and sustainable recovery in Sri Lanka.

ADB US$200 million loan to strengthen Sri Lanka’s financial sector | Economy Next