The ADB loan Sri Lanka package worth $100 million will support policy reforms and tourism investments, with priority projects planned in Trincomalee, Dambulla and Sigiriya to attract more visitors and boost regional economies.
ADB loan Sri Lanka to fund policy reforms and projects in Trincomalee, Dambulla and Sigiriya
The ADB loan Sri Lanka agreement will provide $100 million to strengthen the country’s tourism sector through a mix of policy support and targeted regional investments. Minister Nalinda Jayatissa said the financing is split into two parts: $70 million for policy measures and $30 million for investment projects.
The policy component is designed to enhance tourism governance, improve regulatory frameworks and streamline institutional coordination between public and private stakeholders. Officials expect these reforms to make destination management more effective and sustainable while creating an enabling environment for long-term growth.
The investment component will focus on projects in Trincomalee, Dambulla and Sigiriya, three regions that play a vital role in Sri Lanka’s tourism landscape. Planned measures include improving infrastructure, expanding access to lesser-known attractions, managing visitor traffic more efficiently and encouraging longer stays. Authorities believe these initiatives will help distribute tourist flows across more sites, reducing pressure on popular destinations while increasing income for local communities.
By combining reforms with on-the-ground development, the ADB loan Sri Lanka aims to deliver immediate improvements in visitor experience and long-term gains for the economy. Enhancements to infrastructure, services and marketing are expected to boost arrivals, extend tourist itineraries and strengthen regional participation in the industry.
Tourism remains a key driver of Sri Lanka’s recovery, and multilateral support such as this loan signals growing international confidence in the sector. Officials said implementation plans, project timelines and safeguards will be finalized in the coming months, with the goal of delivering sustainable growth and broader economic impact across the country’s regions.