ADB Approves $100 Million Financing for Sri Lanka’s Social Protection and Economic Recovery

COLOMBO, Sri Lanka — The Asian Development Bank (ADB) approved $100 million in financing on 21 October 2026 to support social protection, economic inclusion, and assistance for low-income and elderly populations in Sri Lanka.

The financing package consists of a $50 million policy-based loan and a $50 million project loan under the Promoting Resilience and Opportunity for Inclusive Recovery Sector Development Program. According to the ADB, the initiative is designed to assist the Sri Lankan government in expanding employment opportunities for low-income households, improving eldercare services, and enhancing the responsiveness of the national social protection system.

The ADB noted that despite ongoing economic recovery in the country, high levels of poverty and vulnerability persist, particularly affecting women, youth, the elderly, persons with disabilities, and communities in rural and disadvantaged areas.

Under the program, support will be directed to the government's National Empowerment Program. This component aims to provide livelihood grants, business and employment assistance, skills development, financial literacy training, and market access to 30,000 households identified through the Aswesuma social registry across six districts.

The initiative also includes measures to update the regulatory framework for eldercare and establish five model elderly day care centers in poorer districts. These centers are intended to deliver integrated care services and serve as test models for potential nationwide expansion.

Additionally, the funding will go toward modernizing Sri Lanka's social protection delivery systems through upgrades to digital platforms, data governance, case management, and monitoring frameworks. The program will also implement coordination mechanisms aimed at improving responsiveness during climate-related shocks and other emergencies.

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