The Asian Development Bank (ADB) has approved a 200 million dollar policy-based loan to support Sri Lanka in strengthening its financial sector. This marks the second subprogram under ADB’s Financial Sector Stability and Reforms Program towards stabilising the country’s economy and manage the financial crisis started last year.
In a statement, ADB has said that the program aims to establish long-term growth by introducing structural reforms in the financial sector, focusing on sustainable recovery, resilience, and poverty alleviation. The bank appreciated Sri Lanka’s progress in stabilising macroeconomic conditions and improving its fiscal framework.
Key reforms under the program include enhanced regulatory oversight by the Central Bank of Sri Lanka. To support micro, small, and medium-sized enterprises, particularly women-led businesses, incentive packages including special loans will be introduced. Financial inclusion will be bolstered through the digitisation of personal information to enhance electronic transactions.