ADB launches $40m facility to aid Sri Lanka’s cyclone recovery and imports

To accelerate the delivery of assistance, ADB mobilized two of its long-standing international risk partners—Munich Re and Swiss Re—to provide the additional backing needed for the emergency facility.

The Asian Development Bank (ADB) has announced a $40 million emergency assistance facility under its Trade and Supply Chain Finance Program (TSCFP) to help Sri Lanka recover from the widespread devastation caused by Cyclone Ditwah. The funding will ensure uninterrupted access to essential imports such as food, medicines, medical equipment, and critical relief supplies, which are urgently needed as the country rebuilds damaged infrastructure and restores livelihoods.

This emergency funding comes in addition to the $200 million in existing TSCFP capacity already available to Sri Lanka, reflecting ADB’s commitment to strengthening trade resilience during crisis situations.

Rapid Scaling of Support Through Global Partnerships

To accelerate the delivery of assistance, ADB mobilized two of its long-standing international risk partners—Munich Re and Swiss Re—to provide the additional backing needed for the emergency facility. The financing will be distributed through six partner banks in Sri Lanka, enabling rapid deployment to importers responsible for bringing in essential goods.

ADB Country Director for Sri Lanka Takafumi Kadono underscored the importance of this intervention:“Cyclone Ditwah has severely disrupted access to vital goods, compounding existing challenges. By partnering with Munich Re, Swiss Re, and our local banks, we are ensuring that critical supply chains for essentials remain operational. This support is crucial for immediate relief, longer-term recovery, and rehabilitation.”

Cyclone Damage Intensifies the Need for Relief Supplies

Cyclone Ditwah brought heavy rains and extreme flooding across Sri Lanka, causing significant damage to:

• Infrastructure and transport networks

• Housing and community assets

• Agricultural land and food production systems

These impacts have increased the urgency of maintaining a steady flow of relief goods, medical supplies, and reconstruction materials for affected populations.

Sustaining Trade During Crises

The initiative builds on ADB TSCFP’s long-standing role in providing targeted trade finance during emergencies, including:

• Support for vaccine imports during the COVID-19 pandemic

• Emergency trade finance during Sri Lanka’s recent economic crisis

The program aims to ensure that essential supply chains remain functional even in periods of severe disruption, protecting both businesses and vulnerable communities.

ADB’s Trade Finance Program: A Backbone for Regional Resilience

Supported by ADB’s AAA credit rating, the TSCFP works with more than 200 partner banks across Asia and the Pacific to deliver guarantees and loans that facilitate trade. Since 2009, the program has backed over $74 billion in trade, with emphasis on sectors that promote sustainable growth, economic diversification, and regional integration.

Through this latest emergency facility, ADB continues to strengthen Sri Lanka’s ability to respond to disaster-related shocks while supporting the country’s broader recovery and reconstruction efforts.