ADB Approves $100 Million Loan for Sri Lanka's Water Sector Reforms

The Asian Development Bank (ADB) has sanctioned a $100 million loan to bolster Sri Lanka's water supply and sanitation sector, aiming to enhance climate resilience and sustainability. The two-part reform program will establish national policies and support implementation actions, addressing governance and sustainability challenges.

The Asian Development Bank (ADB) has approved a $100 million policy-based loan to support Sri Lanka's water supply and sanitation sector reforms. Announced on Wednesday, the loan aims to enhance the country's resilience to climate change and promote long-term sustainability.

The Water Supply and Sanitation Reform Program comprises two subprograms of $100 million each, designed to ensure the resilient and sustainable delivery of water services. Subprogram 1 will establish national policies and strategies and target the National Water Supply and Drainage Board (NWSDB). Subprogram 2 will support the implementation of reform actions and guidelines.

Pedro Almeida, Senior Urban Development Specialist, emphasized that the program will strengthen mechanisms to ensure adequate access to safe water and address governance and sustainability challenges, enabling private sector participation. He highlighted that Sri Lanka's water resources management faces challenges like fragmented management, inadequate climate change considerations in planning, and impacts from unplanned land use and deforestation.

The program includes $800,000 in technical assistance grants for capacity and advisory support to the Ministry of Water Supply and Estate Infrastructure Development (MWS) and NWSDB. The ADB's Technical Assistance Special Fund and the Water Innovation Trust Fund under the Water Financing Partnership Facility will help finance these initiatives.

Established in 1966, ADB is owned by 68 members, including 49 from the region.

(With inputs from agencies.)