ADB approves $100mn loan for Sri Lanka tourism

Sri Lanka
By Editor_1
Tourists walk along a beach in eastern Sri Lanka - AFP/File

COLOMBO – The Asian Development Bank (ADB) has approved a 100 million dollar loan to support Sri Lanka’s tourism sector, with a particular focus on developing the Dambulla and Trincomalee areas, the global lender said.

The financial package will back policy reforms and ‘targeted catalytic investments’, which align with the country’s National Tourism Policy, the ADB said.

“Through appropriate policy and institutional reforms, infrastructure enhancements, and improved sector resilience against internal and external shocks, tourism can become the engine of inclusive economic growth,” said ADB Country Director for Sri Lanka Takafumi Kadono.

The ADB program will support policy and institutional reforms across multiple areas of the sector including governance, asset management, tourism promotion and marketing, skills improvement and digitalization, and sustainable tourism and urban development in two tourism destinations, Dambulla (including Sigiriya) and Trincomalee.

The project will support sector governance improvements; enhance private sector participation and boost tourist arrivals and foreign exchange earnings; and address the infrastructure gap, while strengthening product development and high-end destination marketing.

The funding for the Sustainable Tourism Sector Development Program consists of a concessional loan of $70 million and a regular loan of $30 million from ADB.

“Although Sri Lanka’s tourist arrivals in 2025 returned to 2018 levels, earnings have remained below pre-pandemic figures,” Kadono said.

The program will help diversify the sector by promoting untapped tourism areas including marine tourism, opening up new destinations, increasing tourist stay and spend, and creating an enabling environment for increased women’s participation in the sector, ADB said.

-economynext.com

Editor_1
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