ADB Announces $40 Million Emergency Trade Facility to Aid Sri Lanka Post-Cyclone Ditwah
December 18, Colombo (LNW): The Asian Development Bank (ADB) has unveiled a $40 million emergency funding facility under its Trade and Supply Chain Finance Program (TSCFP) to assist Sri Lanka in the aftermath of Cyclone Ditwah, which caused widespread flooding and damage to homes, infrastructure, and livelihoods.
The facility is designed to facilitate the import of essential goods such as food, medicines, and relief supplies, ensuring that affected communities receive immediate support while the country undertakes reconstruction efforts.
This allocation supplements the existing $200 million in TSCFP resources already available to Sri Lanka. To accelerate delivery, ADB has collaborated with long-standing risk partners, Munich Re and Swiss Re, to provide additional guarantees. Funds will be disbursed through TSCFP’s network of six local partner banks, allowing for rapid mobilisation of resources to meet urgent needs.
“Cyclone Ditwah has severely disrupted the supply of critical goods, compounding existing challenges,” said Takafumi Kadono, ADB Country Director for Sri Lanka. “By leveraging partnerships with insurers and local banks, we are helping to keep supply chains open for essential imports. This initiative is vital for both immediate relief and longer-term recovery.”
The recent cyclone brought heavy rains and extensive flooding, causing significant damage to housing, roads, and agricultural areas. The new facility is expected to strengthen the flow of emergency supplies, medical aid, and reconstruction materials to the hardest-hit regions.
ADB emphasised that this initiative builds on its previous crisis support efforts, including emergency trade finance during Sri Lanka’s economic challenges and assistance for vaccine imports during the COVID-19 pandemic. Backed by its AAA credit rating, TSCFP delivers loans and guarantees through over 200 partner banks, supporting trade diversification and sustainable growth across Asia and the Pacific.
Since its inception in 2009, the programme has facilitated more than $74 billion in trade, focusing on sectors that promote regional integration and long-term development. ADB, founded in 1966 and owned by 69 members, continues to support inclusive, resilient, and sustainable growth in the region through innovative financing and strategic partnerships.
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