ADB Approves $100 Million Loan for Water Supply and Sanitation sector in Sri Lanka
September 13, Colombo (LNW):The Asian Development Bank (ADB) has sanctioned a $100 million policy-based loan to support reforms in Sri Lanka’s water supply and sanitation sector. The initiative aims to bolster the country’s climate resilience and ensure the long-term sustainability of water services.
The Water Supply and Sanitation Reform Program is divided into two subprograms, each valued at $100 million. Subprogram 1 focuses on establishing national policies and strategies for the sector, while Subprogram 2 will support the implementation of these reforms through specific guidelines and actions.
Pedro Almeida, Senior Urban Development Specialist at ADB, highlighted the pressing challenges in the sector, citing fragmented water management and the growing impacts of climate change.
He emphasized that many Sri Lankans still lack access to piped water, and the program aims to rectify this by improving governance and creating opportunities for private sector participation.
Sri Lanka’s water resources management faces several long-standing issues, including imbalanced water allocation between agriculture and drinking water, inadequate climate change considerations, and disorganized planning due to the involvement of multiple agencies.
The program aims to address these challenges through policy interventions that promote equitable water distribution, gender-sensitive services, and a climate change roadmap.
Subprogram 1 will also enhance the sector’s financial sustainability and operational efficiency. This will be achieved through frameworks like the climate-resilient project appraisal for investments and strategic plans for the National Water Supply and Drainage Board (NWSDB).
It is also helping to enhance the efficiency and performance of the sector through the Ministry of Water Supply and Estate Infrastructure Development’s (MWS) approval of a climate-resilient project appraisal framework for investments in the drinking water sector, and NWSDB’s financial sustainability, efficiency, and performance through financial sustainability and public-private sector roadmaps, and a business efficiency action plan.
Additionally, a technical assistance grant of $800,000 will support the Ministry of Water Supply (MWS) and NWSDB in deploying and monitoring reform initiatives. This includes $500,000 from ADB’s Technical Assistance Special Fund and $300,000 from the Water Innovation Trust Fund.
These efforts will pave the way for improved access to safe water and a more sustainable future for Sri Lanka’s water supply and sanitation sector.
September 13, Colombo (LNW):
