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ADB approves $350 mn for Sri Lanka Economic Stabilization Programme
MANILA, PHILIPPINES (29 May 2023) —The Asian Development Bank (ADB) approved a $350 million special policy-based loan to provide budget support to Sri Lanka for economic stabilization. The program is part of a broader package of financial assistance anchored by the International Monetary Fund’s Extended Fund Facility for the country, which aims to stabilize the economy and lay the foundation for economic recovery and sustained growth.
Sri Lanka is facing a severe and unprecedented economic crisis. High inflation has eroded purchasing power, livelihoods have been affected, and past development gains have been reversed.
“ADB is concerned about the deep crisis in the country and its impact on the people of Sri Lanka, especially the poor and the vulnerable, particularly women,” said ADB President Masatsugu Asakawa. “ADB is committed to standing with Sri Lanka as it addresses its present challenges and strides toward economic stabilization, sustainable recovery, and inclusive growth.”
Sri Lanka has embarked on bold reforms to address the causes of both internal and external imbalances and return to a sustainable debt trajectory. The country faces a long road to recovery and must remain steadfast in the implementation of necessary reforms, which include enhancing tax revenue collection, strengthening public financial management, improving performance of state-owned enterprises, ensuring autonomy and independence of the central bank, safeguarding financial sector stability, and bolstering governance frameworks. As these measures are implemented, it is essential to ensure that adequate social protection is provided. Implementing governance reforms and anticorruption measures will be critical.
Transparency and open communication will be crucial in building agreement around the reforms. ADB will proactively engage with the government, other stakeholders, and development partners to help address structural impediments and plan future support.
ADB has supported Sri Lanka’s response throughout the crisis. In 2022, in close coordination with development partners, ADB provided emergency assistance to support basic services and sustain livelihoods. ADB repurposed $334 million of existing loans as emergency response to support the import of essential items such as fertilizer, medicines, chemicals for water treatment, working capital for small and medium-sized enterprises, and cash transfers to the most poor and vulnerable. Trade finance lines through ADB Trade and Supply Chain Finance Program supported the import of essential items during the crisis.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region. (ADB)
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Our focus is on economic stability through fiscal discipline, sustainable debt management, and reforms that enhance productivity and growth – PM
Prime Minister Dr. Harini Amarasuriya participated in the South Asia Regional Conference of the World Federation of Consuls (FICAC) 2026 held on 2nd of February at the Cinnamon Life, Colombo. The conference is hosted by the Association of Consuls in Sri Lanka and the World Federation of Consuls.
The conference held from 1st to 4th of February, brings together diplomats, business leaders, and policymakers to strengthen regional cooperation and explore new avenues for sustainable development across South Asia.
Addressing the event, the Prime Minister noted that selection of Sri Lanka as the venue for this conference holds particular significance at a time when the Government is working closely with international partners to position Sri Lanka as a credible and reliable region.
The Prime Minister also drew attention to Sri Lanka’s vulnerability against climate change, citing the recent impact of Cyclone Ditwah, and commended the support extended to Sri Lanka by the international partners. The Prime Minister emphasized that climate change requires global cooperation, shared responsibility, and innovative solutions.
She further highlighted ongoing efforts to improve public sector efficiency, transparency, and accountability, promote national unity and respect for diversity, and advance digital governance to enhance service delivery and public trust.
The Prime Minister stated,
“The Government of Sri Lanka is committed to addressing economic, social, and environmental challenges through a clear policy framework. Our focus is on economic stability through fiscal discipline, sustainable debt management, and reforms that enhance productivity and growth. At the same time, we are strengthening social welfare programs to support the most vulnerable”.
Addressing at the event, Minister of Foreign Affairs, Foreign Employment and Tourism MP Vijitha Herath also stated that, the government is committed to recognizing Sri Lanka as a sustainable tourism hotspot in the global platform while positioning Sri Lanka as a stable and reliable international partner.
The event was attended by the Deputy Minister of Foreign Affairs and Foreign Employment Arun Hemachandra, FICAC President Nikolaos K. Margaropoulos, President of the Association of Consuls in Sri Lanka Mahen Kariyawasam and Diplomatic corps.

(Prime minister’s media)
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Development Officers threaten to intensify their protest
Protesting Development Officers continued their hunger strike near the Presidential Secretariat, Colombo yesterday (01), for the seventh consecutive day.The protesters, who are members of the Lanka School Development Officers’ Association, are demanding that they be absorbed into the teacher service as they have served as teachers in state-run schools for nearly seven years.
Secretary of the Association, Viraj Manaranga, said the protesters were seeking an urgent meeting with the President. He added that a presidential aide had visited the protest site and offered to arrange for a meeting with the President on 03 Feb., but the union insisted on an earlier date. Manaranga warned that failure to grant a meeting could trigger a massive protest in Colombo today (02).
Four officers participating in the hunger strike have been hospitalised due to deteriorating health, while two more joined the fast on Saturday (31).
In a bid to raise awareness of their grievances, on 30 January a delegation of the All Island Development Officers’ Association visited Most Venerable
Warakagoda Sri Gnanarathana Thera, Mahanayake of the Asgiriya Chapter, and subsequently with the Chapter’s Registrar, Ven. Dr. Medagama Dhammananda Thera. The prelates said promises that had been made to them should be fulfilled.
The protest began on 26 January as a satyagraha, after authorities failed to respond to repeated requests to integrate the officers into the teaching service. The escalation into a fast-unto-death underscores the protesters’ frustration over the prolonged delay
by Pradeep Prasanna Samarakoon
News
Auditor General to be appointed tomorrow
The long-vacant post of Auditor General would be filled on 03 Feb., after months of controversy and delays, Minister of Transport, Highways and Urban Development Bimal Rathnayake said on Friday (31) in Kandy.
The Constitutional Council met at the Parliamentary complex on Friday to discuss the appointment but failed to reach a decision on a suitable candidate. The President had previously proposed four names on four separate occasions, all of which were rejected. The Council is now set to consider the fifth nominee.
The post has remained vacant since April 2025, following the retirement of Chulanta Wickramaratne, who served as the 41st Auditor General. More than 10 months have passed without a permanent appointment.
Sources said a female officer in the Auditor General’s Department has been nominated again, though her previous recommendation was rejected due to some allegations against her.
Meanwhile, senior audit officer Dharmapala Gammanpila, with 31 years of service and the department’s most senior official, has received backing from the Mahanayake Theras of the three Nikayas, the Maha Sangha, and several civil society groups for appointment as the 42nd Auditor General.
Sources noted that the three civil society representatives on the Constitutional Council will play a crucial role in the final decision.
by Chaminda Silva and SK Samaranayake
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