The Asian Development Bank (ADB) said Sri Lanka's economy is poised to grow after ending war in May 2009.

Richard Vokes, Country Director of the ADB's resident mission in Colombo said there has been significant improvement in the confidence and expectations after the end of military operation.

"We are seeing that increased interest in investment and tourism is picking up. These are the things we expect to continue in 2010 and with that comes the prospects of much higher rates of growth".

Vokes predicted that this year's growth rate would likely to end at 4-5 percent.

The ADB official said Sri Lanka is to receive USD 350 million in aids from the ADB next year, much of which would go to the development of north and east.

Vokes said ADB is refocusing the aid given to Sri Lanka and about 60 percent of its lending over the next three years will be targeted for the north and east, directly or indirectly.