ADB approves $100m to support poorer households and eldercare in Sri Lanka

The Promoting Resilience and Opportunity for Inclusive Recovery Sector Development Program will support Sri Lanka’s National Empowerment Program, reaching 30,000 households across six districts.

Sri Lanka will receive $100 million from the Asian Development Bank to expand livelihood opportunities for low-income households, improve eldercare and strengthen support for people facing economic hardship. The financing combines a $50 million policy-based loan with a $50 million project loan, bringing together reforms and investment in services.

The support comes as the country's economic recovery continues to leave many people exposed to poverty and unexpected financial shocks. Women, young people, older adults, persons with disabilities and communities in rural and disadvantaged regions remain particularly vulnerable, making access to work, care and reliable assistance an important part of the recovery.

Livelihood support will reach 30,000 households

The Promoting Resilience and Opportunity for Inclusive Recovery Sector Development Program will support Sri Lanka's National Empowerment Program, reaching 30,000 households across six districts. Households will be identified through the Aswesuma social registry, with women and young people among those receiving assistance. Support will include livelihood grants, employment and business services, skills development, financial literacy training and access to reliable markets.

Combining financial assistance with training and market access will give participating households support to develop their livelihoods and pursue more stable earning opportunities.

"Sri Lanka's economic recovery must translate into meaningful improvements in the lives and livelihoods of vulnerable people," said Shannon Cowlin, ADB Country Director for Sri Lanka. Cowlin said the programme would expand economic opportunities for poor households and strengthen social care for an ageing population, helping build a social protection system that supports lasting recovery and shared prosperity.

Five day care centres will help improve eldercare

The programme will establish five model elderly day care centres in poorer districts, providing integrated care and support services for older people. The centres will serve as demonstration sites where eldercare approaches can be tested and refined before being considered for wider use across the country. Their experience will help inform how services can respond to the needs of Sri Lanka's ageing population.

The financing will support improvements to the policy and regulatory framework governing eldercare. These reforms will accompany investment in services, giving the government a stronger foundation for developing care provision beyond the initial centres.

Stronger systems to deliver help during emergencies

Investment in social protection will cover monitoring and evaluation, digital platforms, case management and data governance. These improvements will help strengthen how assistance is organised, delivered and assessed, supporting a more effective and responsive system. The programme will reinforce institutional arrangements and coordination mechanisms so that support can reach people promptly during climate-related shocks and other emergencies.

For households with limited savings or insecure incomes, a disruption can quickly deepen financial hardship. Strengthening the systems responsible for delivering assistance is part of the programme's wider effort to help vulnerable people withstand such shocks and participate more fully in Sri Lanka's recovery.