ADB announces $450 million package for Cambodia and Sri Lanka

ADB President Masato Kanda said the financing aims to protect vulnerable families from external crises while helping both countries build stronger and more resilient economies.

The Asian Development Bank (ADB) has approved a US$450 million financing package to help Cambodia and Sri Lanka respond to the economic impact of the conflict in the Middle East, which has increased costs and heightened uncertainty across Asia and the Pacific. The package combines emergency support with long-term economic reforms to protect vulnerable households, strengthen businesses and improve resilience against future external shocks.

ADB will provide a US$250 million loan for Cambodia's Rapid Intervention for Stabilization of the Economy (RISE) Program, which is designed to cushion the impact of rising prices while protecting essential public spending. The programme will support temporary fiscal measures and safeguard planned social spending under the 2026 national budget. It will also promote the adoption of clean energy technologies.

More than 1 million low-income households registered under Cambodia's IDPoor programme will receive income support, including at least 350,000 women-headed households. Additional assistance will include debt relief and support for agricultural inputs to help rural communities maintain food production.

ADB's financing will be complemented by up to US$250 million from the Asian Infrastructure Investment Bank (AIIB) and up to US$188 million from the Japan International Cooperation Agency (JICA), bringing the programme's total potential financing to US$688 million.

Sri Lanka to support reforms and jobs

ADB has also approved a US$200 million policy-based loan for Sri Lanka's Trade, Investment, and Industry Development Program, including US$100 million in additional financing to help the country manage economic pressures linked to the Middle East conflict. The programme will support reforms to modernise trade systems, improve the competitiveness of small and medium-sized enterprises (SMEs) and attract greater investment into economic zones.

The Bank said these reforms will help businesses expand production, increase exports and integrate more effectively into regional and global value chains, creating jobs while encouraging private sector-led growth.

Building resilience against future shocks

ADB President Masato Kanda said the financing aims to protect vulnerable families from external crises while helping both countries build stronger and more resilient economies.

By strengthening trade, encouraging investment and diversifying exports, the programmes are expected to improve Cambodia's and Sri Lanka's ability to withstand future global economic disruptions while supporting long-term, inclusive growth.