The Asian Development Bank (ADB) has announced a financial assistance package worth US$ 4 billion to support 15 countries, including Sri Lanka, in mitigating the economic impacts of the ongoing Middle East conflict.
According to the ADB, the package comprises approximately US$ 3 billion in financing requested by governments and an additional US$ 1 billion in trade finance support for energy and food imports.
“ADB is acting with speed and scale to support countries experiencing a range of impacts from the Middle East conflict, including pressure on finances, remittances, tourism, and fuel and fertilizer supplies,” ADB President Masato Kanda said.
“At this time of acute uncertainty and risk, we are deploying our full suite of crisis response instruments, including budget support, trade finance, and a new mechanism to rapidly repurpose existing portfolio funds to deliver the tailored and timely support our members need to safeguard their economies and communities,” he added.
The ADB stated that it has received formal requests for assistance from 15 affected countries across the region, including Sri Lanka, Bangladesh, Fiji, and the Philippines.
The requested support packages range from US$ 15 million to US$ 1.5 billion and include policy-based loans, countercyclical financing, emergency assistance loans, and the rapid reallocation of funds from existing sovereign projects.
The development bank also revealed that discussions are ongoing with four additional countries experiencing continued economic challenges linked to the conflict.
Separately, India has requested US$ 1.5 billion in ADB financing to strengthen economic resilience and advance key reform initiatives.
The proposed assistance for India includes a US$ 1 billion policy-based loan under its Urban Transformation and Investment Program and a further US$ 500 million for the Accelerating Affordable and Inclusive Rooftop Solar Systems Development Program.
ADB said the solar initiative aims to expand access to clean energy, reduce reliance on imported fuels, strengthen domestic manufacturing, enhance battery storage capacity, promote circular economy practices, and improve long-term energy security.
The latest support package follows a broader financial assistance programme announced by the ADB in March to help member countries address the economic fallout from global uncertainties and geopolitical tensions.