ADB approves $100 million loan for Sri Lanka water sector reforms

13 Sep 2024 CW Team

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

The loan is part of the Water Supply and Sanitation Reform Program, which consists of two subprograms of $100 million each. The first subprogram will focus on establishing national policies and strategies, particularly for the National Water Supply and Drainage Board (NWSDB), while the second will support the implementation of reform initiatives.

Pedro Almeida, Senior Urban Development Specialist, ADB, emphasised that the program will address governance, sustainability, and private sector participation in Sri Lanka's water sector, which faces challenges such as fragmented water resources management and climate change impacts.

Additionally, the program includes $800,000 in technical assistance to support the Ministry of Water Supply and Estate Infrastructure Development (MWS) and NWSDB in implementing the reforms. The Water Innovation Trust Fund will contribute $300,000, while ADB’s Technical Assistance Special Fund will cover $500,000.

ADB, established in 1966, is owned by 68 members, with 49 from the region. (ET)

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