ADB Ready to Extend Support Pending Completion of Sri Lanka’s Debt Restructuring

In a bid to bolster Sri Lanka’s economic resilience, the Asian Development Bank (ADB) stands poised to extend further assistance pending the completion of the nation’s debt restructuring process among bilateral donors. Masatsugu Asakawa, President of the ADB, emphasized the importance of this restructuring exercise, stressing the need for transparent participation from all stakeholders.

“ADB has been a steadfast partner in providing budget assistance to Sri Lanka. Presently, we await the finalization of the debt restructuring among bilateral donors. Once completed, the ADB, in conjunction with the IMF, will explore avenues to provide additional support under ongoing programs,” Asakawa affirmed.

The debt restructuring, a pivotal step in Sri Lanka’s economic recovery, requires concerted efforts from bilateral donor countries and major private creditors to ensure its effectiveness and fairness. Asakawa reiterated the ADB’s commitment to contributing to this process transparently and constructively.

Looking beyond Sri Lanka, Asakawa addressed the broader economic landscape of Asia and the Pacific, highlighting the region’s resilience amidst mounting challenges. Climate change, conflicts, food insecurity, and escalating debt levels have tested the region’s development trajectory over the past year.

“The climate crisis poses a significant threat to the region’s sustainable development. With 2023 marking the warmest year on record and a surge in natural disasters affecting millions, the urgency for proactive measures is undeniable,” Asakawa stated during the 57th Annual Meeting in Georgia.

Reflecting on ADB’s strategic initiatives, Asakawa noted substantial progress made through capital management reforms, unlocking up to $100 billion in new lending capacity for the next decade. Furthermore, ADB’s revamped operating model (NOM) has streamlined processes, enabling expedited and tailored support to member countries.

In 2023, ADB’s commitments surged to $23.6 billion, showcasing a 15% increase from the previous year. Notably, a record $9.8 billion was allocated to climate finance, underscoring ADB’s commitment to addressing environmental challenges.

Moreover, ADB’s Private Sector Operations Department allocated $3.8 billion for non-sovereign operations, with a notable focus on frontier economies. Asakawa affirmed ADB’s dedication to meeting corporate financing targets for critical sectors such as health, gender equality, education, and food security.

Looking ahead, ADB remains steadfast in its commitment to supporting member countries’ development agendas, with a particular focus on addressing pressing challenges and fostering sustainable growth across the Asia-Pacific region.