Sri Lanka secured a $200 million Asian Development Bank loan for post-Cyclone Ditwah reconstruction on Tuesday, while the cabinet approved several governance and legislative measures including a new counterterrorism bill and an extradition agreement with Poland.
Sri Lanka has received a $200 million loan from the Asian Development Bank to fund a five-year reconstruction and livelihood support initiative following Cyclone Ditwah. The agreement was signed at the Treasury in Colombo on Tuesday by Finance Ministry Secretary Harshana Suriyapperuma and ADB Country Director Shannon Cowlin. The project will focus on rehabilitating cyclone-damaged road infrastructure with improved climate resilience, restoring irrigation systems, and providing housing and agricultural livelihood assistance to affected households between 2026 and 2030.
Cyclone Ditwah inflicted significant damage across multiple regions, destroying agricultural land, residential properties, and critical infrastructure. Rural, coastal, and upcountry communities were particularly hard hit, with farming and fishing families losing income-generation capacity and livestock. The government has designated the Ministry of Transport, Highways and Urban Development as the executing agency for the reconstruction effort.
Meanwhile, Sri Lanka's cabinet approved presenting gazette notifications to Parliament to designate three companies as Primary Enterprises of Strategic Importance within the Colombo Port City: Marina Hotel Holdings, Prime Melva Port City, and Homelands Port City. The cabinet also authorized signing an extradition agreement with Poland to enable convicted nationals to serve sentences in their home country and facilitate social rehabilitation.
On legislative matters, the cabinet approved publishing a draft "Protection of the State from Terrorism Bill" in the Government Gazette for parliamentary consideration. This proposed legislation would replace the Prevention of Terrorism Act of 1979. Minister Nalinda Jayatissa stated the bill incorporates safeguards to protect democratic freedoms and fundamental rights while addressing terrorism and organized crime, though previous versions of counterterrorism legislation have faced criticism regarding detention without warrant and broad definitions of terrorism.
In separate economic developments, the rupee closed at 331.90/332.00 to the US dollar, while bond yields remained largely steady. The Colombo Stock Exchange declined 0.64 percent, with market analysts attributing weakness to rising oil prices and international policy uncertainty.
