ECONOMYNEXT — The Asian Development Bank (ADB) has approved a 100 million dollar financing package to boost Sri Lanka’s macroeconomic stability by strengthening public expenditure management, improving revenue mobilization, and fostering private sector participation.
The program will include developing a legal framework for public–private partnerships (PPP) in line with international best practices, and mobilizing additional climate finance and private investment.
It will focus on strengthening the management, transparency, and accountability of state-owned enterprises (SOE).
“This program also aims to improve the credibility and execution of public expenditure, enhance domestic revenue mobilization, and foster a more predictable and transparent investment climate,” said ADB Country Director for Sri Lanka Takafumi Kadono.
“We will work closely with the government to restore macroeconomic stability and promote inclusive, sustainable growth by strengthening Sri Lanka’s fiscal governance and build a more efficient, accountable, and resilient public sector.”
The program will help improve efficiency and transparency in public expenditure management by streamlining budgetary processes and optimizing resource allocation to ensure the effective utilization of public funds, the lender said.
“It will enhance revenue mobilization by strengthening revenue generation through stronger domestic and international tax compliance such as the development and implementation of a multiyear tax compliance improvement strategy and by further deepening international tax cooperation following Sri Lanka’s recent membership to the Global Forum on Transparency and Exchange of Information for Tax Purposes.”
In addition to the draft PPP law, a Fiscal Risk Statement and a climate finance strategy is planned.
It also addresses gender gaps through Sustainable Development Goals budget tagging, a new gender sensitive Nationally Determined Contribution, and public procurement reforms to enhance its development impact and inclusivity, ADB said. (Colombo/Nov10/2025)