ADB to Deploy $250 Million Loan to Shield Cambodia from Middle East Impact

The Asian Development Bank (ADB) is set to deploy USD 250 million to Cambodia to protect poor households and strengthen the economy as the conflict in the Middle East drives up costs and deepens uncertainty across Asia and the Pacific.

The USD 250 million deployment is part of a larger USD 450 million package announced by the ADB on July 30, 2026, for Cambodia and Sri Lanka. The package combines immediate crisis support with longer-term economic reforms, and includes a USD 250 million loan for Cambodia’s Rapid Intervention for Stabilisation of the Economy (RISE) Programme, and a USD 200 million policy-based loan for Sri Lanka’s Trade, Investment, and Industry Development Programme.

In Cambodia, the RISE Programme will fund temporary, targeted fiscal measures and protect planned social spending in the 2026 national budget. It will also promote clean energy technologies. More than 1 million poor households registered under the government’s IDPoor programme will receive income support, including at least 350,000 households headed by women. Assistance will also include debt relief and support for agricultural inputs in rural areas.

ADB’s USD 250 million loan will be complemented by the equivalent of up to USD 250 million from the Asian Infrastructure Investment Bank, and the equivalent of up to USD 188 million from the Japan International Cooperation Agency (JICA). Combined financing for the programme could reach USD 688 million.

“Cambodia’s open economy is exposed to global fuel and food price volatility. As the country imports all its oil and gas, higher global prices quickly affect the agriculture, industry, services, and transport sectors that sustain growth and livelihoods,” said Nianshan Zhang, ADB Director General for Southeast Asia. “For poor and vulnerable households, these pressures translate into higher living costs, lower incomes, rising debt, and unemployment.”

He added:

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“The RISE Programme is designed to respond to these challenges directly. It will support temporary and targeted fiscal measures, while helping preserve planned social spending under the 2026 national budget. It will provide income support to more than 1 million poor and at-risk households under the government’s IDPoor programme, including at least 350,000 female-headed households. It will also provide financial relief, agriculture sector support, and productive assets for poor households.”

In Sri Lanka, ADB’s USD 200 million loan includes USD 100 million in additional financing to help the country absorb the economic pressures created by the conflict. The programme supports reforms to modernise trade systems, make small and medium-sized enterprises more competitive, and attract investment to economic zones. The reforms will help enterprises expand, export, and integrate into regional and global value chains, creating jobs and supporting private sector-led growth. By diversifying exports and strengthening competitiveness, the programme will also enhance the economy’s resilience to future external shocks.

ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.

This article was adapted from a supplied press release.