ADB Unveils $300 Million Water Lifeline To Benefit 1.3 Million Sri Lanka

COLOMBO (News 1st); Access to clean water is something many people take for granted, until supplies become unreliable, infrastructure fails or extreme weather puts entire communities at risk. With climate change increasing pressure on essential services, Sri Lanka has now secured a major financial boost aimed at transforming the country's water and sanitation sector.

The Asian Development Bank (ADB) has approved two projects worth a combined US$300 million to expand, modernize and strengthen water supply and sanitation services across Sri Lanka.

According to the ADB, the funding package is designed not only to improve access to safe drinking water and sanitation but also to make the country's water infrastructure more resilient to climate-related challenges while strengthening governance and attracting 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.

"These projects support the Government of Sri Lanka's efforts to strengthen water sector governance, improve service delivery, enhance the resilience and financial sustainability of sector institutions, and promote greater private sector participation, helping ensure sustainable and resilient water and sanitation services for Sri Lankans."

The larger of the two initiatives, the Climate-Resilient Sustainable Water Supply and Sanitation Project, will receive US$200 million and is expected to improve access to reliable and safe water supply services for more than 1.3 million people living in the Western and Southern Provinces.

The project will also improve sewerage and sanitation services for nearly 250,000 people in Jaffna.

Under the programme, new climate-resilient water treatment plants, transmission systems, distribution networks and storage reservoirs will be constructed in Colombo and Lunugamwehera.

In the Northern Province, the project will fund the development of wastewater treatment facilities, sewerage networks and pumping stations in Jaffna, areas where improved sanitation infrastructure has long been identified as a priority.

The initiative will further seek to reduce water losses, increase the use of renewable energy within the sector, strengthen the operational capacity of the National Water Supply and Drainage Board and encourage greater private sector involvement in future water-related investments.

The second component of the funding package comes through a US$100 million policy-based lending programme designed to accelerate reforms within Sri Lanka's water sector.

The programme builds on reforms already introduced under the first phase and is expected to strengthen governance, improve operational performance and help mobilize private investment for future projects.

ADB said the reforms focus on two key pillars.

The first involves strengthening resilience, environmental sustainability and inclusiveness through improved water resource management, enhanced water safety standards, better sanitation management and stronger adaptation measures for natural disasters and climate-related risks.

The second focuses on governance and financial sustainability, including reforms to the National Water Resources Policy, tariff structures, corporate performance management and the implementation of long-term financial sustainability plans within the National Water Supply and Drainage Board.

The programme also aims to increase private sector participation while supporting Sri Lanka's broader reform agenda and green economic growth objectives.

ADB believes the combined impact of the investments and reforms will extend far beyond the water sector itself.

Officials say improved water and sanitation services will strengthen public health, improve quality of life, support economic development and help communities better withstand the growing threat posed by natural disasters and extreme weather events.