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Asian Development Bank Launches New Country Partnership Strategy for Sri Lanka, 2024–2028

The Asian Development Bank (ADB) has unveiled a fresh country partnership strategy (CPS) for Sri Lanka, spanning from 2024 to 2028. This strategic approach aims to prioritize the restoration of the country’s macroeconomic stability, the revitalization of growth, and the establishment of a foundation for sustainable recovery and resilience.

ADB Country Director for Sri Lanka, Takafumi Kadono, stated, “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.” Kadono emphasized that the CPS is tailored to address Sri Lanka’s persistent macroeconomic imbalances and structural impediments through knowledge solutions, policy advisory support, and targeted investments.

Sri Lanka has begun to exhibit signs of stability and recovery from a profound economic crisis. Inflation has notably declined from 69.8% to 4.0% between September 2022 and December 2023, while foreign exchange reserves surged from $1.9 billion in 2022 to $4.4 billion in 2023. Economic growth returned to positive territory in the second half of 2023, with the momentum expected to persist.

Under the new CPS, ADB’s assistance will concentrate on three strategic objectives: strengthening public financial management and governance; fostering private sector development and promoting green growth; and enhancing access to climate-smart public services and deepening inclusion. Additionally, 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 CPS objectives.

The CPS aims to address the root causes of the crisis by supporting reforms in public financial management systems, governance enhancement, domestic resource mobilization acceleration, and improvement of fiscal and debt sustainability. ADB will also concentrate on promoting greater private sector participation in the economy and diversifying it with an emphasis on green and sustainable growth.

As of December 2023, ADB had committed over $3.7 billion in 45 public sector loans and grants in Sri Lanka, along with $25.6 million in private sector investments. ADB remains committed to fostering a prosperous, inclusive, resilient, and sustainable Asia-Pacific region while continuing efforts to eradicate extreme poverty, with ownership spanning 68 members, 49 of which are from the region.

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