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Sri Lanka secures $100 mn ADB loan for water sector reforms

September 12, Colombo (LNW): The Ministry of Water Supply and Estate Infrastructure Development has expressed its approval following the Asian Development Bank’s (ADB) decision to grant Sri Lanka a US$ 100 million policy-based loan.

The loan is set to drive transformative reforms in the country’s water supply and sanitation sector, aimed at improving sustainability, climate resilience, and operational efficiency.

This initiative builds on ongoing efforts by the Ministry to ensure equitable access to clean water while modernising infrastructure to meet the challenges posed by climate change.

With growing concerns over water scarcity and environmental degradation, this programme is seen as a crucial step towards addressing these issues on a national scale.

The ADB’s Water Supply and Sanitation Reform Programme is structured into two main sub-programmes.

These will focus on establishing comprehensive national-level policies and strategies while ensuring their effective implementation through the National Water Supply and Drainage Board (NWSDB), the primary agency responsible for managing water distribution in Sri Lanka.

The reforms seek to resolve pressing issues, including the fragmented management of water resources, insufficient adaptation to climate change, and governance inefficiencies that have hindered progress in the sector.

Amongst the core elements of the reform package are the development of a Climate Change Resilience Roadmap, frameworks for climate-resilient project appraisals, and business efficiency action plans.

Additionally, the programme will encourage private sector participation and implement water safety plans to ensure long-term water quality and safety.

A key aspect of the project is its emphasis on gender-sensitive service delivery and the equitable allocation of water resources, ensuring that marginalised communities are not left behind.

The NWSDB will play a central role in these reforms, tasked with improving its operational performance, reducing water wastage, and promoting sustainable water usage practices across the country.

By supporting these reforms, the ADB loan is expected to strengthen the resilience of Sri Lanka’s water supply system, ensuring it can meet future challenges and serve the growing needs of the population amidst the increasing threat of climate change.

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