The Asian Development Bank (ADB) has approved a $200 million policy-based loan to support Sri Lanka in fortifying its financial sector.

This loan, part of the second subprogram of ADB’s Financial Sector Stability and Reforms Program, builds on measures initiated under the first subprogram in 2023.

The funding aims to improve financial sector gove ance, strengthen financial institutions, and enhance regulatory frameworks, bolstering the system’s resilience. Key reforms under this initiative will also enhance the Central Bank of Sri Lanka’s regulatory supervision, ensuring financial stability and improved access to finance.