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

The Asian Development Bank (ADB) has announced a US $ 4 billion financing package to help the 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 US $ 3 billion in assistance requested by the affected countries, including Sri Lanka and an additional US $ 1 billion in trade finance to support the critical energy and food imports.

“The ADB is acting with speed and scale to support the countries experiencing a range of impacts from the Middle East conflict, including pressure on finances, remittances, tourism and fuel and fertiliser 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 the 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 US $ 15 million to US $ 1.5 billion and includes policy-based loans, countercyclical financing, emergency assistance loans and the rapid reallocation of the 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 US $ 1.5 billion in the ADB financing to strengthen economic resilience and advance urban transformation and clean energy goals. The proposed package includes a US $ 1 billion policy-based loan for urban infrastructure and reforms and US $ 500 million to accelerate rooftop solar energy development and improve long-term energy security.