The Asian Development Bank (ADB) has approved a $100 million loan to bolster Sri Lanka's small and medium-sized enterprises (SMEs).

The funding aims to enhance SMEs' access to finance, particularly for women-led enterprises, and build resilience against economic and climate challenges.

ADB will collaborate with financial institutions to provide a $50 million credit line for underserved SMEs and establish a $500,000 subsidy facility for women-led businesses. The project will also improve the National Credit Guarantee Institution's capacity to support SMEs and integrate green finance initiatives for climate adaptation.