The Asian Development Bank (ADB) has announced a $450 million financial package aimed at protecting vulnerable communities and strengthening economic resilience in Cambodia and Sri Lanka amid rising costs and uncertainty caused by the ongoing conflict in the Middle East.
ADB President Masato Kanda said the funding would help safeguard poor households in Cambodia while supporting Sri Lanka’s efforts to create jobs, attract investment and expand trade.
The package includes a $250 million loan for Cambodia’s Rapid Intervention for Stabilization of the Economy (RISE) Program and a $200 million policy-based loan for Sri Lanka’s Trade, Investment, and Industry Development Program.
Under the RISE Program, Cambodia will receive support for temporary fiscal measures, protection of social spending in the 2026 national budget and promotion of clean energy technologies. More than one million low-income households registered under the government’s IDPoor programme are expected to benefit from income assistance, including at least 350,000 women-led households.
The programme will also provide support through debt relief measures and assistance for agricultural inputs in rural areas.
The ADB financing for Cambodia will be supplemented by additional funding from the Asian Infrastructure Investment Bank and the Japan International Cooperation Agency, with combined programme financing potentially reaching $688 million.
Meanwhile, Sri Lanka’s $200 million allocation includes $100 million in additional financing to help address economic pressures linked to the Middle East conflict.
The programme will focus on improving trade systems, strengthening small and medium-sized enterprises, and attracting investment into economic zones. The reforms are expected to help businesses expand, increase exports and integrate more effectively into regional and global value chains.
ADB said the Sri Lanka programme will also support private sector-led growth, create employment opportunities and improve the country’s ability to withstand future external economic shocks by diversifying exports and enhancing competitiveness.
The Asian Development Bank, established in 1966, supports sustainable and inclusive economic development across the Asia-Pacific region through financial assistance, partnerships and development initiatives. The bank is owned by 69 members, including 50 from the region.
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