The Asian Development Bank (ADB) has approved a $98 million loan to support Sri Lanka's efforts to build an inclusive, secure and resilient digital economy, the bank announced on Tuesday. The funding will expand broadband access, modernise government data systems and strengthen cybersecurity, as the island nation makes digital transformation a central part of its recovery.

The loan will finance the Advancing Digital Transformation Project, which aims to improve public service delivery and lay the foundations for private sector-led growth. The ADB said the project would help expand high-quality broadband connectivity and improve government data infrastructure, while reinforcing institutional capacity for cybersecurity and data protection and enhancing digital skills across the public sector. The bank is providing an additional $1 million technical assistance grant from its Technical Assistance Special Fund to support project preparation, design and capacity building for the agencies responsible for delivery.

"Sri Lanka has made strong progress in stabilising its economy and is now prioritising digital transformation as a key driver of inclusive growth and productivity," said Shannon Cowlin, the ADB's country director for Sri Lanka. "This project will help bridge connectivity gaps, improve the reliability and security of digital systems, and strengthen institutions to deliver better services to citizens and businesses."

Closing the connectivity gap

The need for investment is clear. Despite high mobile coverage across the country, access to reliable, high-speed broadband remains uneven, particularly in rural and underserved areas. The ADB said gaps in digital and data infrastructure, cybersecurity, data protection and skills continued to constrain the delivery of efficient public services and limit private sector development.

The project will take a comprehensive, whole-of-government approach aligned with the government's National Digital Economy Blueprint. It will expand high-quality broadband connectivity in underserved areas, upgrade telecommunications infrastructure and boost services from 2G to 4G and 5G, and make government data systems more reliable, interoperable and resilient through an enhanced Lanka Government Cloud 3.0.

It will also bolster cybersecurity protection, including monitoring and incident response for government agencies deemed as critical national information infrastructure. And it will improve digital skills to build institutional capacity by training public sector employees, with targeted support to increase women's participation in the digital economy.

A vote of confidence in the recovery

By strengthening digital infrastructure and institutions, the project is expected to improve access to essential services such as health, education and administrative services, reduce transaction costs and expand economic opportunities. The ADB said it would also enhance resilience by supporting secure, continuous digital systems that are critical to emergency response and service delivery.

The project aims to boost digital inclusion and equity by expanding access to digital government services for citizens and businesses, particularly women and underserved communities. The announcement was reported by Devdiscourse, which noted the financing follows the government's National Digital Economy Blueprint and its plans to improve digital infrastructure and encourage private sector-led growth.

The ADB, founded in 1966 and owned by 69 members, 50 of them from the region, describes itself as a leading multilateral development bank supporting sustainable, inclusive and resilient growth across Asia and the Pacific. For Sri Lanka, still rebuilding after its economic crisis, the $98 million loan is both practical help for its digital infrastructure and a signal of confidence that its stabilisation is holding.