ADB Approves US$100 Million to Expand Livelihood Support and Social Protection in Sri Lanka
COLOMBO, October 22, 2026 — The Asian Development Bank (ADB) has approved US$100 million in financing to strengthen Sri Lanka’s social protection system, expand economic opportunities for low-income households and improve care services for the elderly.
The financing comprises a US$50 million policy-based loan and a US$50 million project loan under the Promoting Resilience and Opportunity for Inclusive Recovery Sector Development Program.
The programme will combine policy reforms with investments in employment, livelihoods and social care, supporting vulnerable communities as Sri Lanka’s economic recovery continues.
A key component will support the government’s National Empowerment Program, reaching 30,000 households identified through the Aswesuma social registry across six districts.
Participating households, including women and young people, will receive livelihood grants, employment and business support, skills development, financial literacy training and assistance to access reliable markets.
ADB Country Director for Sri Lanka Shannon Cowlin said the country’s recovery needed to deliver tangible improvements in the lives and livelihoods of vulnerable people. She said the programme would help broaden economic opportunities, strengthen services for an ageing population and improve the resilience of social protection.
According to ADB, poverty and exposure to economic shocks remain high despite the recovery. Women, young people, older persons, persons with disabilities and communities in rural and disadvantaged areas remain particularly vulnerable.
The programme will also strengthen the policy and regulatory framework for eldercare and establish five model elderly day care centres in poorer districts.
These facilities will provide integrated care and support while testing service models that could subsequently be expanded nationwide.
Further investments will improve the delivery of social protection through stronger monitoring and evaluation, digital platforms, case management and data governance.
The programme will also strengthen institutional coordination and emergency response arrangements to help authorities provide timely assistance during climate-related shocks and other emergencies.
