The Asian Development Bank (ADB) has announced a $450 million financing package to help Cambodia and Sri Lanka cushion the economic impact of the ongoing Middle East conflict, with Sri Lanka set to receive a $200 million policy-based loan.
According to the ADB, the funding is aimed at protecting vulnerable communities while strengthening economic resilience as rising global energy costs and geopolitical uncertainty continue to affect countries across Asia and the Pacific.
ADB President Masato Kanda said the institution is moving swiftly to support both countries, noting that the assistance will help Sri Lanka create jobs, attract investment and expand trade while enabling Cambodia to protect more than one million low-income households.
Of the total package, Cambodia will receive a $250 million loan under the Rapid Intervention for Stabilization of the Economy (RISE) Programme, while Sri Lanka will receive a $200 million policy-based loan under the Trade, Investment, and Industry Development Programme.
The ADB said Sri Lanka’s package includes $100 million in additional financing to help the country manage the economic pressures arising from the Middle East conflict.
The programme will support reforms to modernise trade systems, improve the competitiveness of small and medium-sized enterprises (SMEs), and attract investment into economic zones. It also aims to help businesses expand exports, integrate into regional and global value chains, create employment opportunities and strengthen private sector-led economic growth.
The ADB noted that diversifying exports and improving competitiveness will enhance Sri Lanka’s ability to withstand future external economic shocks.
Meanwhile, Cambodia’s RISE Programme will finance targeted fiscal measures, protect social spending under the 2026 national budget, promote clean energy technologies and provide income support, debt relief and agricultural assistance to more than one million low-income households.
The ADB said Cambodia’s programme could receive combined financing of up to $688 million, with additional support expected from the Asian Infrastructure Investment Bank (AIIB) and the Japan International Cooperation Agency (JICA).
Founded in 1966, the ADB is a multilateral development bank owned by 69 member countries, including 50 from Asia and the Pacific, and supports sustainable, inclusive and resilient development across the region.
