ADB to Support Sri Lanka's Financial Sector Reforms in Sri Lanka

COLOMBO (News 1st) - The Asian Development Bank (ADB) today approved a $200 million policy-based loan to further help the Government of Sri Lanka strengthen its financial sector.

The ADB said the second subprogram of its Financial Sector Stability and Reforms Program builds on the stabilization and crisis management measures put in place under the first subprogram approved in 2023.

This loan will assist in implementing key reforms to improve financial sector governance, enhance the capacity of financial institutions, and boost regulatory frameworks. It aims to strengthen the financial system's resilience and improve access to finance, contributing to sustainable economic growth.

Policy reforms under subprogram 2 will also improve the Central Bank of Sri Lanka's regulatory supervision of banks to ensure financial stability.