The Asian Development Bank (ADB) is set to grant a US $ 100 million policy-based loan to support Sri Lanka’s water supply and sanitation sector reforms, aimed at enhancing the country’s resilience to climate change and promote long-term sustainability. 

The ADB approved the loan this week to support the government under its Water Supply and Sanitation Reform Programme, a two-part initiative designed to create a more resilient and sustainable water supply and sanitation system in the country. 

“Efficient delivery of safe and reliable water supply in Sri Lanka is limited by fragmented water resources management and exacerbated by climate change. This programme will not only strengthen mechanisms to ensure adequate access to safe water but also address governance and sustainability challenges in the sector, enabling the participation of the private sector,” ADB Senior Urban Development Specialist Pedro Almeida stated in a press release, following the loan approval. 

President Ranil Wickremesinghe also received the Cabinet approval this week to secure the loan for subprogramme one, of the project, which will establish national policies and strategies for the National Water Supply and Drainage Board (NWSDB). 

The subprogramme, with the approval of the Prime Minister’s Office, will support the NWSDB in ensuring equitable water allocation and sharing procedures. 

Additionally, the programme will enhance the sector’s efficiency and performance through the Water Supply and Estate Infrastructure Development Ministry’s approval of a climate-resilient project appraisal framework for drinking water investments. It will also support the NWSDB’s financial sustainability and performance through the development of public-private sector road maps and a business efficiency action plan. 

The ADB’s reform programme also includes a US $ 800,000 technical assistance grant to provide capacity and advisory support to the Water Supply and Estate Infrastructure Development Ministry and NWSDB, for the formulation, deployment, implementation and monitoring of the reform initiatives. (NR)