The Asian Development Bank (ADB) has approved a $300 million financial package comprising two projects designed to modernise water supply networks, expand sewerage systems, and strengthen governance across Sri Lanka.
The funding mechanism combines a $200 million infrastructure investment project with a $100 million policy-based lending program aimed at accelerating sector reforms, improving institutional financial sustainability, and crowding in private sector capital.
The $200 million Climate-Resilient Sustainable Water Supply and Sanitation Project will upgrade clean water delivery for over 1.3 million residents across Sri Lanka’s Western and Southern provinces, while expanding municipal sewerage and sanitation infrastructure for nearly 250,000 people in Jaffna, located in the Northern Province.
Key technical, operational, and policy components of the $300 million package include:
- Capital works infrastructure: Construction of climate-resilient water treatment facilities, bulk transmission networks, and storage reservoirs in Colombo and Lunugamwehera, alongside new wastewater treatment plants, pumping stations, and sewer networks in Jaffna.
- Operational efficiency: Implement non-revenue water reduction measures, integrate renewable energy systems into pumping operations, and expand private sector participation frameworks.
- Governance and policy reforms: The $100 million policy-based subprogram supports amendments to the National Water Resources Policy, water tariff structure overhauls, and implementation of the National Water Supply and Drainage Board’s (NWSDB) financial sustainability roadmap.
- Climate resilience roadmap: Establishes formal risk adaptation protocols for water resources management, natural hazard response, and long-term water safety planning.
Shannon Cowlin, ADB Country Director for Sri Lanka, stated that access to reliable and safe water infrastructure remains essential for national economic recovery and public health.
Cowlin added that the dual-project framework supports the Sri Lankan government’s broader strategy to enhance service delivery, improve the operational performance of utility institutions, and build climate resilience into critical public infrastructure.
