The Asian Development Bank (ADB) has approved a $100 million policy-based loan to support Sri Lanka’s water supply and sanitation sector reforms, aiming to improve the country’s resilience to climate change and promote long-term sustainability. The loan is part of the Water Supply and Sanitation Reform Program, which consists of two subprograms, each valued at $100 million. Subprogram 1 will focus on establishing policies and strategies at the national level and for the National Water Supply and Drainage Board (NWSDB), while Subprogram 2 will facilitate the implementation of reforms and guidelines.
Pedro Almeida, Senior Urban Development Specialist at ADB, noted that fragmented water resource management, exacerbated by climate change, limits the efficient delivery of safe and reliable water in Sri Lanka, with many citizens lacking access to piped water. He emphasized that the program will strengthen mechanisms to ensure access to safe water and address governance and sustainability challenges, enabling private sector participation.
Sri Lanka’s water management faces significant challenges, including an imbalance between agriculture and drinking water, inadequate consideration of climate change in planning, and the involvement of multiple agencies at the national and regional levels. To address these issues, Subprogram 1 supports the National Water Resources Policy, ensuring equitable water allocation, promoting access to safe drinking water, and establishing a climate change roadmap. It also aims to improve sector efficiency through a climate-resilient project appraisal framework and enhance NWSDB’s financial sustainability and performance.
In addition, the program includes an $800,000 technical assistance grant to support capacity building for the Ministry of Water Supply and Estate Infrastructure Development (MWS) and NWSDB in formulating and implementing reform initiatives. ADB’s Technical Assistance Special Fund will provide $500,000, with an additional $300,000 from the Water Innovation Trust Fund.
ADB remains committed to fostering a prosperous, inclusive, resilient, and sustainable Asia-Pacific region. Established in 1966, ADB is owned by 68 members, 49 of which are from the region.