ADB grants USD 100M for Sri Lanka’s water sector reforms

The Asian Development Bank (ADB) has approved a USD 100 million policy-based loan to help reform Sri Lanka’s water supply and sanitation sector, aiming to boost resilience against climate change and ensure long-term sustainability.

The Water Supply and Sanitation Reform Program consists of two USD 100 million subprograms. Subprogram 1 focuses on developing national policies and strategies, including for the National Water Supply and Drainage Board (NWSDB). Subprogram 2 will focus on implementing these reforms.

Pedro Almeida, ADB’s Senior Urban Development Specialist, highlighted that Sri Lanka’s fragmented water management, worsened by climate change, leaves many without access to piped water. The programme aims to improve access to safe water and address governance and sustainability issues to encourage private sector involvement.

Sri Lanka’s water management faces challenges such as unbalanced allocation between agriculture and drinking water, poor climate change integration in planning, and the impact of unplanned land use and deforestation.

Subprogram 1 supports policies for equitable water allocation, access to safe drinking water, gender-sensitive services, and a climate change roadmap. It also promotes climate-resilient frameworks and strategies to improve NWSDB’s financial and operational performance.

Additionally, the program includes an USD 800,000 technical assistance grant to support reform implementation, with USD 500,000 from ADB’s Technical Assistance Special Fund and USD 300,000 from the Water Innovation Trust Fund.