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ADB grants Lanka USD 110 Mn for Health Systems Enhancement Project

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The Government has decided to borrow a loan amounting to USD 110 million from the Asian Development Bank (ADB) and a grant of USD 03 million, provided by ADB-managed Japanese Fund for Poverty Reduction (JFPR), to implement the “Additional Financing of Health Systems Enhancement Project”, the Finance Ministry said.

In early 2020, with the outbreak of COVID-19 pandemic, USD 15 million from the ongoing HSEP, was reallocated for the emergency activities related to scaling up of the capacity of molecular biology laboratory, increasing the accessibility to emergency medical equipment at hospitals, expanding high dependency and intensive care units, expanding oxygen accessibility, and increasing the availability of consumables, like surgical masks, personal protection equipment and reagents and other consumables for polymerase chain reaction (PCR) testing and screening of COVID-19.

The additional financing will be used to scale up of the outputs of a well performing ongoing project, addressing the government’s urgent financing requirements to support and manage the third wave of COVID-19 pandemic, and the replenishment of above reallocated funds to complete the originally planned activities mainly related to primary healthcare (PHC) development.

The aggregate impact of the original and the additionally financed projects continue to be aligned with the original project impact which is building a healthier nation ensured with a more comprehensive PHC system and to support the COVID-19 pandemic management. The total project cost is estimated as USD 123 million including the Government contribution of USD 10 million. The project is scheduled to be completed by 30th November, 2025.

The relevant Loan Agreement and Grant Agreement for the Additional Financing of Health Systems Enhancement Project, amounting to USD 110 million and USD 3 million respectively, were signed by S R Attygalle, Secretary, Ministry of Finance, on behalf the Government of Sri Lanka and Chen Chen, Country Director, ADB Resident Mission on behalf of ADB.



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Import and Export (Control) Regulations No. 08 of 2026

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The Ministry of Industries and Entrepreneurship Development has recommended the establishment of Sri Lankan Standards, i.e. the import testing methodology for imported tires used for passenger cars and pneumatic tires for three-wheelers with the aim of ensuring a fair competitive environment for local
manufactures and ensuring consumer safety and security.

Taking into the said recommendations, “Import and Export (control regulations N0.08 of the 2026)” has  been enacted to amend the existing regulations by means of the Extraordinary Gazette Notification No. 2508/27 dated 2026-10-01, prescribing Sri Lanka standard 1212 for the import of passenger types (HS Code 4011.10.90) and Sri Lanka standard 1347 for the import of
pneumatic tires for three – wheeled vehicles (HS Code 4011.90.10).

Accordingly, the Cabinet of Ministers has approved the resolution furnished by  the President in his capacity as the Minister of Finance, Planning, and Economic Development to submit the aforementioned regulations to Parliament for  approval.

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Draft Bill of the Public Private Partnership Enterprises Act to be gazzetted

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Approval of the Cabinet of Ministers was granted at their meeting held on 02.06.2025 to introduce a new act to promote and providing legal provisions for facilitating the Public Private Joint Enterprises within Sri Lanka as well as the establishment of the National Agency for Public Private Partnership Joint Enterprises.

Accordingly, the Legal Draftsman has formulated the relevant draft bill and the Attorney General has given his clearance to the said draft bill.

The Cabinet of Ministers approved the resolution furnished by the President in his capacity as the Minister of Finance, Planning and Economic Development to publish the said
draft bill in the government gazette notification and thereby submit it to the Parliament for its concurrence.

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Amendment of the Ayurvedha Act No. 31 of 1961

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Regulation, development and control of indigenous medical sector in Sri Lanka comprised of Ayurvedha, Sidhdha, Unani, Local Therapies are carried out under the provisions of Ayurvedha Act No. 31 of 1961.

Although amendments were made to the act from time to time as per the requirements, the necessity of further amending the Ayurvedha Act has been identified to enable efficiently maintaining all activities of local medical field productively, further formalizing the regulation of the sector, taking actions to providing licenses applicable to export of local medicines, and achieving the progress and sustainable development goals in the local medical sector.

Based on the said factors, the Cabinet of Ministers granted approval to the resolution furnished by the Minister of Health and Mass Media to direct the Legal Draftsman to formulate a draft bill to amend the Ayurvedha Act No. 31 of 1961.

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