Sri Lanka among countries to benefit from ADB’s $4Bn crisis package

June 12 (Daily Mirror) - The Asian Development Bank (ADB) has announced a $4 billion financing package to help countries cope with the economic fallout from the ongoing West Asia conflict, with Sri Lanka among 15 governments that have formally requested support.

ADB President Masato Kanda said the funding package includes around $3 billion in assistance requested by affected countries, including Sri Lanka, and an additional $1 billion in trade finance to support critical energy and food imports.

“ADB is acting with speed and scale to support countries experiencing a range of impacts from the Middle East conflict, including pressure on finances, remittances, tourism, and fuel and fertilizer supplies,” Kanda said.

“At this time of acute uncertainty and risk, we are deploying our full suite of crisis response instruments—including budget support, trade finance, and a new mechanism to rapidly repurpose existing portfolio funds—to deliver the tailored and timely support our members, from large to small, need to safeguard their economies and communities,” he added.

According to the ADB, formal requests for assistance have been received from 15 affected governments across the region, including Bangladesh, Fiji, the Philippines, and Sri Lanka.

The requested support ranges from $15 million to $1.5 billion and includes policy-based loans, countercyclical financing, emergency assistance loans, and the rapid reallocation of existing sovereign portfolio funds.

The multilateral lender also said it is in discussions with four additional countries facing continued economic impacts linked to the conflict.

Meanwhile, India has sought $1.5 billion in ADB financing to strengthen economic resilience and advance urban transformation and clean energy goals. The proposed package includes a $1 billion policy-based loan for urban infrastructure and reforms, and $500 million to accelerate rooftop solar energy development and improve long-term energy security.