The Asian Development Bank (ADB) has unveiled a fresh Country Partnership Strategy (CPS) for Sri Lanka, spanning from 2024 to 2028. This approach aims to prioritize the restoration of the nation's macroeconomic stability, rejuvenation of growth, and laying the groundwork for sustainable recovery and resilience.
“This new partnership strategy will build on ADB’s ongoing assistance to support the country’s efforts to restore macroeconomic stability and to achieve green and long-term sustainable growth”, said ADB Country Director for Sri Lanka Takafumi Kadono. “The CPS responds to Sri Lanka’s economic situation by tailoring ADB assistance to address the country’s long-standing macroeconomic imbalances and structural impediments through knowledge solutions, policy advisory support, and priority investments”.
Sri Lanka is demonstrating indications of stability and recuperation following a profound economic downturn. Statistics reveal a notable decrease in Sri Lanka's inflation, plummeting from 69.8% to 4.0% between September 2022 and December 2023. Furthermore, foreign exchange reserves have surged to $4.4 billion in 2023 from $1.9 billion in 2022. Economic growth in Sri Lanka has rebounded into positive terrain in the latter half of 2023, with expectations of sustaining this momentum.
The Asian Development Bank's support within the new CPS for Sri Lanka will concentrate on three key goals: enhancing public financial management and governance, nurturing private sector advancement while advocating for green growth, and enhancing access to climate-resilient public services while promoting inclusivity. The new CPS strategic objectives will incorporate three main themes: climate action, disaster resilience, and environmental sustainability; gender equality and social inclusion; and governance, capacity development, and digitalization.