The Asian Development Bank (ADB) is poised to extend support to Sri Lanka pending the completion of its debt restructuring process among bilateral donors, according to ADB President Masatsugu Asakawa. As Sri Lanka navigates its debt restructuring, ADB awaits the finalization of this exercise, which will pave the way for coordinated assistance from various stakeholders, including the International Monetary Fund (IMF). Asakawa emphasized the importance of transparent participation from all bilateral donors and major private creditors in this restructuring process to ensure its effectiveness and sustainability.
Addressing the challenges facing the Asia-Pacific region, Asakawa highlighted the impact of climate change, conflict, food insecurity, and mounting debt on developing member countries (DMCs). The region’s vulnerability to climate-related disasters underscores the urgency of addressing the climate crisis, with 2023 marking the warmest year on record. ADB remains committed to evolving its mission to better support DMCs in confronting these challenges, with significant capital management reforms and operational enhancements aimed at providing tailored support and financing solutions.
In 2023, ADB demonstrated its commitment to the region by committing $23.6 billion in loans, grants, guarantees, equity investments, and technical assistance, representing a 15% increase from the previous year. Notably, a record $9.8 billion was allocated for climate finance, accounting for 41.5% of total commitments, reflecting ADB’s heightened focus on climate resilience and sustainability. Additionally, ADB’s Private Sector Operations Department significantly increased lending for non-sovereign operations, particularly in frontier economies, demonstrating its commitment to fostering inclusive and sustainable development across Asia and the Pacific.