Sri Lanka's Cabinet has given the go-ahead for a USD 200 million concessional loan from the Asian Development Bank to support trade, investment, and industrial development programmes.

The Cabinet of Ministers has approved a proposal from President Anura Kumara Dissanayake, acting in his capacity as Minister of Finance, to secure a concessional loan of USD 200 million from the Asian Development Bank (ADB). The decision follows preliminary Cabinet approval granted on 15 June 2026 to begin negotiations under Sub-Programme 1 of the ADB's Trade, Investment and Industrial Development Programme, which have since been concluded successfully.

The loan arrangement has received the necessary clearances from both the Attorney General's Department and the Central Bank of Sri Lanka. The State Debt Management Office has also imposed specific conditions on the facility, which must be satisfied as part of the agreement's implementation.

According to official statements, the borrowed funds are intended to support the country's ongoing economic development initiatives while strengthening existing trade and investment programmes. The concessional nature of the loan indicates favourable borrowing terms compared to commercial alternatives, reflecting the ADB's mandate to assist developing member countries in their economic advancement.