November 10, Colombo (LNW): Sri Lanka is set to receive a major boost to its water supply and sanitation infrastructure following the Asian Development Bank’s (ADB) approval of two development initiatives valued at a combined US$300 million.
The financial package consists of US$200 million allocated to the Climate-Resilient Sustainable Water Supply and Sanitation Project, alongside a further US$100 million for the second phase of the Water Supply and Sanitation Reform Programme.
The investments are expected to address longstanding challenges in the country’s water sector, while improving access to essential services, strengthening institutional capacity and making infrastructure more resilient to climate-related threats.
ADB Country Director for Sri Lanka Shannon Cowlin stressed that dependable access to clean water and proper sanitation facilities plays a crucial role in safeguarding public health and supporting sustainable economic development.
She noted that the two initiatives would complement the Government’s efforts to modernise the sector through better governance, improved operational efficiency, stronger financial management and increased opportunities for private sector investment.
A significant portion of the funding will go towards expanding water services in the Western and Southern provinces, with more than 1.3 million people expected to benefit from improved and more dependable supplies.
The project will also target sanitation shortcomings in Jaffna, where nearly 250,000 residents are expected to gain access to improved sewerage and wastewater management facilities.
Major construction and rehabilitation work is planned, including the establishment of climate-resilient water treatment plants, expanded distribution networks and additional storage reservoirs in Colombo and Lunugamwehera. Jaffna will also see the development of wastewater treatment plants, sewerage systems and pumping stations.
Beyond infrastructure expansion, the project will place considerable emphasis on making existing services more efficient. Measures will include reducing water wastage through improved distribution systems, encouraging the use of renewable energy and strengthening the technical and operational capabilities of the National Water Supply and Drainage Board (NWSDB).
Greater private sector involvement is also expected to play a part in supporting investment and improving service standards across the industry.
The remaining US$100 million will finance the second phase of the Water Supply and Sanitation Reform Programme, which is designed to consolidate policy and institutional changes initiated under its first phase.
As the ADB’s first policy-based financing initiative dedicated to Sri Lanka’s water sector, the programme seeks to establish a more sustainable framework for managing water resources and delivering essential services, while creating opportunities to attract private investment.
Its reform agenda covers several areas, including water resource management, drinking water safety, sanitation oversight and disaster preparedness. Improving the financial health and overall performance of institutions operating within the sector will also be a priority.
Among the proposed measures are revisions to the National Water Resources Policy, changes to water tariff structures and the introduction of a sector-wide resilience roadmap. The programme will also strengthen corporate performance monitoring and advance the NWSDB’s financial sustainability strategy.
The ADB expects the combined initiatives to contribute towards a more efficient, financially viable and climate-conscious water sector, while supporting Sri Lanka’s wider economic recovery and public service reform efforts.
The latest funding commitment represents an important step towards addressing the country’s growing demand for reliable water and sanitation services, particularly as climate pressures and infrastructure deficiencies continue to pose challenges to long-term development.