ADB Deploys $450 Million to Support Sri Lanka and Cambodia

The Asian Development Bank is deploying a $450 million regional assistance package to protect Asia-Pacific economies from the economic fallout caused by conflict and instability in the Middle East. The funding is designed as a financial buffer to maintain macroeconomic stability, sustain essential imports, and protect vulnerable populations from external shocks.

Sri Lanka will receive a $200 million policy-based loan through its Trade, Investment, and Industry Development Program. This support aims to modernize trade systems, increase the competitiveness of small and medium-sized enterprises, and attract investment to economic zones. These measures address balance-of-payments pressures and energy security for a nation currently recovering under an International Monetary Fund bailout program.

Cambodia is receiving a $250 million loan for its Rapid Intervention for Stabilisation of the Economy (RISE) Program to provide income support and debt relief for more than 1 million poor households. This program may receive additional complementary financing from the Asian Infrastructure Investment Bank and the Japan International Cooperation Agency, which could increase Cambodia's total funding to $688 million.