ADB Approves $200M Loan to Aid Sri Lanka's Finance Sector

Loan comes as Sri Lanka awaits second installment of IMF bailout amid public dissatisfaction over government revenue measures.

The Asian Development Bank has approved a $200 million loan to Sri Lanka to help stabilize the country's finance sector.
Sri Lanka is awaiting IMF approval for the second installment of a $2.9 billion bailout package.
The ADB's loan is part of a program to strengthen the stability and governance of Sri Lanka's banking sector, and deepen sustainable and inclusive finance, particularly for women-led micro, small, and medium-sized enterprises.
Sri Lanka declared bankruptcy in April 2022 with more than $83 billion in debt, more than half of which is owed to foreign creditors.
Despite improvements in the supply of essentials and power, there is growing public dissatisfaction with the government's efforts to increase revenue by raising electricity bills and imposing heavy new income taxes on professionals and businesses.