Sri Lanka, July 31 -- The Asian Development Bank (ADB) has approved a US$200 million policy-based loan to support Sri Lanka in mitigating the economic impact of the ongoing conflict in the Middle East while advancing key economic reforms.

The funding forms part of a wider US$450 million regional assistance package for Sri Lanka and Cambodia, aimed at helping vulnerable economies cope with growing global uncertainty stemming from the Middle East crisis.

Of the total allocation, US$100 million has been earmarked to help Sri Lanka manage the immediate economic pressures arising from the conflict.

The financial assistance will back the Government's Trade, Investment and Industry Development Programme, which seeks to modernise trade systems...