New ADB partnership strategy for Sri Lanka to foster sustainable recovery, build resilience and revive growth

The Asian Development Bank (ADB) has launched a new country partnership strategy (CPS) for Sri Lanka covering the period 2024–2028. The strategy will focus on restoring the country’s macroeconomic stability, reviving growth, and establishing the foundation for sustainable recovery and resilience.

“This new partnership strategy will build on ADB’s ongoing assistance to support the country’s efforts to restore macroeconomic stability, and to achieve green and long-term sustainable growth,” said ADB Country Director for Sri Lanka Takafumi Kadono. “The CPS responds to Sri Lanka’s economic situation by tailoring ADB assistance to address the country’s long-standing macroeconomic imbalances and structural impediments through knowledge solutions, policy advisory support, and priority investments.”

Sri Lanka is showing signs of stability and recovery from a deep economic crisis. Data shows that Sri Lanka’s inflation significantly declined from 69.8% to 4.0% between September 2022 and December 2023.

Foreign exchange reserves have increased to $4.4 billion in 2023 from $1.9 billion in 2022. Sri Lanka’s economic growth returned to positive territory in the second half of 2023 and that momentum is likely to continue.

ADB’s assistance under the new CPS for Sri Lanka will focus on three strategic objectives: strengthening public financial management and governance; fostering private sector development promoting green growth; and improving access to climate-smart public services and deepening inclusion.

Three thematic priorities—climate action, disaster resilience and environmental sustainability; gender equality and social inclusion; and governance, capacity development, and digitalization—will be integrated into the new CPS strategic objectives.