The Asian Development Bank (ADB) has approved two projects worth a total of US$300 million to expand and strengthen water supply and sanitation services across Sri Lanka.
The funding comprises US$200 million for the Climate-Resilient Sustainable Water Supply and Sanitation Project and US$100 million for the second subprogram of the Water Supply and Sanitation Reform Program.
“Access to safe, reliable, and sustainable water and sanitation services is essential for public health and economic growth,” said ADB Country Director for Sri Lanka Shannon Cowlin.
She said the projects would support the government's efforts to strengthen water sector governance, improve service delivery, enhance institutional resilience and financial sustainability, and encourage greater private sector participation.
Under the US$200 million project, more than 1.3 million people in the Western and Southern provinces are expected to benefit from improved access to reliable and safe water supply services.
The project will also improve sewerage and sanitation services for nearly 250,000 people in Jaffna in the Northern Province.
Planned infrastructure developments include new climate-resilient water treatment plants, transmission and distribution networks, and storage reservoirs in Colombo and Lunugamwehera. Wastewater treatment facilities, sewerage networks and pumping stations will also be developed in Jaffna.
The initiative will further focus on reducing water losses, promoting renewable energy use, strengthening the capacity of the National Water Supply and Drainage Board (NWSDB), and encouraging private sector involvement in the water sector.
Meanwhile, the US$100 million second subprogram of the Water Supply and Sanitation Reform Program will build on reforms introduced under its first phase.
The programme, ADB's first policy-based lending initiative in Sri Lanka's water sector, aims to strengthen water governance and service delivery while mobilising private sector financing for future investments.
The reforms will focus on improving water resource management, water safety, sanitation management and preparedness for natural hazards, while strengthening the operational and financial performance of sector institutions.
Key measures include amendments to the National Water Resources Policy, tariff reforms, the adoption of a resilience roadmap for the water supply and sanitation sector, improved corporate performance management and implementation of the NWSDB's financial sustainability roadmap.
The programme will also seek to increase private sector participation and support Sri Lanka's broader economic reform agenda, including efforts to improve public services and promote green economic growth, the ADB said in a statement.
