"Asian Development Bank Approves $100 Million Loan for Sri Lanka"

The Asian Development Bank (ADB) has approved a $100 million policy-based loan to support Sri Lanka's efforts to reform its water supply and sanitation sector. The loan is part of a larger Water Supply and Sanitation Reform Program, which aims to enhance the country’s resilience to climate change and promote sustainable service delivery.

The program, consisting of two subprograms worth $100 million each, focuses on strengthening the governance and sustainability of water supply and sanitation services. The first subprogram will establish national policies and strategies, particularly for the National Water Supply and Drainage Board (NWSDB), while the second subprogram will implement reforms and guidelines to improve the sector.

Pedro Almeida, Senior Urban Development Specialist at ADB, stated, “Efficient delivery of safe and reliable water in Sri Lanka is limited by fragmented management and climate change impacts. This program will address these challenges while encouraging private sector involvement.”

Sri Lanka faces long-standing issues in water resource management, including imbalanced allocation between agriculture and drinking water, lack of climate change considerations, and unplanned land use. ADB’s initiative also includes an $800,000 technical assistance grant to support the Ministry of Water Supply and Estate Infrastructure Development and the NWSDB in implementing reforms. The grant is funded by ADB’s Technical Assistance Special Fund and the Water Innovation Trust Fund.

ET