ADB approves $100 million loan for Sri Lanka’s water resilience

The Asian Development Bank (ADB) has approved a significant loan aimed at enhancing Sri Lanka's water supply and sanitation sector. This initiative is part of a broader Water Supply and Sanitation Reform Program, which consists of two subprograms, each valued at USD 100 million. The first subprogram focuses on establishing national policies and strategies, while the second is dedicated to implementing reform actions and guidelines. This structured approach is designed to address the fragmented management of water resources in the country. Sri Lanka faces numerous challenges in water management, including an imbalance in water allocation between agricultural and drinking needs, inadequate consideration of climate change in planning, and the involvement of multiple agencies. These issues have been exacerbated by unplanned land use and deforestation, which further complicate the delivery of safe and reliable water supply. To support these reforms, the ADB is providing an additional USD 800,000 in technical assistance grants. This funding will aid the Ministry of Water Supply and Estate Infrastructure Development and the National Water Supply and Drainage Board in formulating and implementing necessary reforms. The ADB's Technical Assistance Special Fund and the Water Innovation Trust Fund will also contribute to this effort. The overarching goal of this program is to enhance the resilience of Sri Lanka's water supply systems against climate change impacts, ensuring sustainable access to safe water for its population. By addressing governance and sustainability challenges, the program aims to facilitate private sector participation in the water sector, ultimately leading to improved service delivery.