ADB Sri Lanka Country Partnership Strategy 2024-2028 launched

The Asian Development Bank (ADB) intends to bring Sri Lanka to a more competitive level through the ADB Sri Lanka Country Partnership, Takafumi Kadono, Country Director, Sri Lanka Resident Mission ADB told the launch of ADB’s Sri Lanka Country Partnership Strategy (CPS) 2024-2028 held in Colombo yesterday, which will guide ADB’s operations in Sri Lanka over the next five year .

He said they would re-orientate their program from the traditionally financing projects to budget support on the back of policy reforms that are done and they support as well in sectors where reforms are ongoing and some still in the making covering power, financial, water, tourism, agriculture, public financial management and capital market and trade and investment. With regard to budget support he said they were aligning with the IMF program and will provide USD 300-400 million annually and this will depend on the progress in reforms.

He said they would be looking at selectively financing investments in the infrastructure and social sector that require external financing.

Kadono said they did see good progress in the reforms but this was just the beginning and they were very difficult reforms that were undertaken in a very short period of time and there should be a realistic expectation on what can be done and in the same time the momentum has to continue and avoid a situation of reform fatigue and there should be a continuous social and public support towards these reforms. Sri Lanka’s FDI is as low as 1% to GDP and there must be a more favourable conducive environment to attract investors both foreign and domestic as well.

The overarching objective of the Sri Lanka Country Partnership Strategy, 2024–2028 (CPS) is fostering sustainable recovery, building resilience and reviving growth in Sri Lanka.

The CPS is underpinned by three cross cutting priorities (i) climate action, disaster resilience and environmental sustainability; (ii) gender equality and social inclusion; and (iii) governance, capacity development, and digitalization.

These will be implemented through three strategic objectives (i) strengthen PFM and governance, (ii) foster PSD promoting green growth, and (iii) improve access to climate-smart public services and deepen inclusion.

The CPS is aligned with the country priorities, global commitments under the Paris Agreement and SDGs, ADB’s Strategy 2030, and the climate and private sector shifts under ADB’s new operating model.

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