The funding package aims to expand access to safe drinking water, improve sanitation facilities and strengthen the resilience of the country’s water infrastructure against climate-related challenges. It will also support sector reforms, improve governance and encourage greater private sector participation.
“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.
The larger project, the Climate-Resilient Sustainable Water Supply and Sanitation Project, will receive US$200 million. It is expected to provide more than 1.3 million people in the Western and Southern Provinces with improved access to reliable and safe water supply services.
The project will also upgrade sewerage and sanitation services for nearly 250,000 people in Jaffna.
Planned infrastructure developments include climate-resilient water treatment plants, transmission systems, distribution networks and storage reservoirs in Colombo and Lunugamwehera. In Jaffna, the funding will support wastewater treatment facilities, sewerage networks and pumping stations.
The project will also focus on reducing water losses, increasing the use of renewable energy in the sector and strengthening the operational capacity of the National Water Supply and Drainage Board (NWSDB). Greater private sector involvement in future water-related investments is another key objective.
The remaining US$100 million will be provided through a policy-based lending programme aimed at accelerating reforms in Sri Lanka’s water sector. It builds on the reforms introduced during the programme’s first phase.
According to the ADB, the reforms will focus on two main areas: strengthening resilience, environmental sustainability and inclusiveness, and improving governance and financial sustainability.
The measures include better water resource management, improved water safety standards, stronger sanitation management and enhanced preparedness for natural disasters and climate-related risks.
The programme will also support reforms to the National Water Resources Policy, tariff structures and corporate performance management, alongside long-term financial sustainability plans for the NWSDB.
The ADB expects the combined investment and reform programme to improve public health, raise living standards, support economic development and help communities respond more effectively to natural disasters and extreme weather events.
