Thu Sep 12 03:20:54 UTC 2024: ## ADB Approves $100 Million Loan to Support Sri Lanka’s Water Sector Reforms

**Colombo, Sri Lanka** – The Asian Development Bank (ADB) has approved a $100 million policy-based loan to support Sri Lanka’s water supply and sanitation sector reforms. The loan will help enhance the country’s resilience to climate change impacts and promote long-term sustainability.

The program is divided into two subprograms, each worth $100 million. Subprogram 1 will focus on establishing national policies and strategies for the National Water Supply and Drainage Board (NWSDB), while subprogram 2 will support the implementation of reform actions and guidelines.

“Efficient delivery of safe and reliable water supply in Sri Lanka is limited by fragmented water resources management and exacerbated by climate change,” said Pedro Almeida, Senior Urban Development Specialist at ADB. “This program will not only strengthen mechanisms to ensure adequate access to safe water but also address governance and sustainability challenges of the sector that will enable the participation of the private sector.”

Sri Lanka faces longstanding challenges in water resources management, including an unbalanced allocation between agriculture and drinking water, inadequate climate change consideration in planning and development, and the involvement of multiple agencies at national and regional levels. Unplanned land use and deforestation have also impacted water resources.

The program will be supported by a $800,000 technical assistance grant to provide capacity and advisory support to the Ministry of Water Supply and Estate Infrastructure Development (MWS) and NWSDB. The ADB’s Technical Assistance Special Fund will contribute $500,000, while the Water Innovation Trust Fund, under the Water Financing Partnership Facility administered by ADB, will provide $300,000.

This loan is a significant step towards improving water security and sustainability in Sri Lanka, particularly in the face of climate change challenges. The ADB’s commitment to supporting the country’s water sector reforms demonstrates its dedication to ensuring access to safe water and sanitation for all.

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