The Manila-based lender, the Asian Development Bank (ADB), has allocated an indicative coverage of US$900 million for Sri Lanka’s development in 2025.

Subject to government approval, the island will receive support for macroeconomic stability, electricity, agriculture, finance, tourism and skills development. The funding will be provided through policy-based loans, results-based lending, investment projects and technical assistance projects, top representatives of the Sri Lankan aid agency shared yesterday.

Discussions are currently underway with the Sri Lankan government on the specific types of support needed, said ADB’s country operations chief, Cholpon Mambetova.

During the country program mission scheduled for March, discussions will be held to finalize the pipeline of projects from 2025 to 2028.

“We have a number of investment projects and technical assistance projects on a grant basis, mainly to support capacity development of government institutions, provide some analytical support and carry out various institutional strengthening activities,” Mambetova said.

In the first quarter of 2025 (1Q25), ADB will hold a Tripartite Portfolio Review Meeting (TPRM), which will include the Ministry of Finance and other line ministries.

The TPRM will focus on the current US$4 billion portfolio, assessing project implementation, potential solutions to issues and challenges, if any. “So far, we have had a good year. “In terms of project implementation, we do not have any projects that are at risk,” she said.

In 2024, the Asian Development Bank launched projects worth US$808 million, including: In 2024, the Asian Development Bank launched projects worth US$808 million, including: Small and Medium Enterprise Finance Project (US$100 million), Power Sector Reform and Financial Stability Program – Sub-Programs 1 and 2 (US$300 million), Water Supply and Sanitation Reform Program – Sub-Program (US$100 million), Mahaweli Water Security Program – Part 3 (US$93 million), Financial Sector Stability and Reform Program – Sub-Program 2 (US$200 million), and Energy Activity Support Facility – Activity 1 (US$15 million). “In the case of Sri Lanka, I think it’s important to note that we have a multilateral development role. When no other bank lends, when the country cannot access capital markets, when the country needs financing, we provide it.

“We do not provide budget support. We ensure that structural and policy reforms are implemented that address the inherent weaknesses so that the country can recover or rebuild better, stronger and on a more sustainable, inclusive path,” said Takafumi Kadono, the Asian Development Bank’s country director. Kadono noted that projects funded by the Asian Development Bank are priority projects and undergo a “rigorous due diligence process.”

“The investments we fund are critical and not just ‘nice to haves,’” he said.