Cabinet Approves $620 Million ADB Loan and Forms Four Committees to Address Middle East Impact

The Cabinet of Ministers, meeting on March 10, 2026, approved a proposal from the Finance Ministry to access US$620 million in policy-based financing from the Asian Development Bank during 2026. The funds will support the ongoing implementation of structural reforms across fiscal consolidation, financial sector strengthening, and state enterprise governance. The approval follows successful programme reviews with both the ADB and the IMF, both of which have commended Sri Lanka's adherence to reform targets.

In a second major decision, the Cabinet established four dedicated committees to monitor and respond to the economic and social fallout from the ongoing Middle East conflict. The committees, reporting weekly to Cabinet, will cover fuel and energy security, macroeconomic impacts, household welfare support, and trade and logistics resilience. They are empowered to recommend emergency policy interventions as the situation demands. A full statement of terms of reference and committee membership is to be published in the Government Gazette.