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Gulf Press > Business > Asian Development Bank approves a $100 million loan for Sri Lanka
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Asian Development Bank approves a $100 million loan for Sri Lanka

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Last updated: 2024/09/12 at 6:44 AM
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The Asian Development Bank (ADB) has approved a $100 million policy-based loan to support Sri Lanka’s water supply and sanitation sector reforms aimed at enhancing resilience to climate change impacts and promoting long-term sustainability. The Water Supply and Sanitation Reform Program, consisting of two subprograms of $100 million each, will contribute to more resilient and sustainable delivery of water supply and sanitation services. Subprogram 1 will establish policies and strategies nationally and for the National Water Supply and Drainage Board (NWSDB), while subprogram 2 will support the implementation of reform actions and guidelines.

The water resources management in Sri Lanka faces challenges such as unbalanced allocation between agriculture and drinking water, inadequate consideration of climate change in planning and development, involvement of multiple agencies at the national and regional level, and impacts from unplanned land use and deforestation. The program is also supported by an $800,000 technical assistance grant to provide capacity and advisory support to the Ministry of Water Supply and Estate Infrastructure Development’s (MWS) and NWSDB for the formulation, deployment, implementation, and monitoring of reform initiatives in the next subprogram. ADB’s Technical Assistance Special Fund will cover $500,000 of the amount, while the Water Innovation Trust Fund will finance $300,000.

Senior Urban Development Specialist Pedro Almeida highlighted the challenges faced in ensuring efficient delivery of safe and reliable water supply in Sri Lanka due to fragmented water resources management and the impact of climate change. Almeida stated that the program will strengthen mechanisms to ensure adequate access to safe water and address governance and sustainability challenges in the sector to enable the participation of the private sector. The program aims to improve the governance and sustainability of the water supply and sanitation sector in Sri Lanka by creating policies and strategies at the national and NWSDB levels, as well as supporting the implementation of reform actions and guidelines.

The approved loan from ADB is part of the organization’s efforts to support policy reforms in Sri Lanka’s water supply and sanitation sector to enhance resilience to climate change impacts and promote long-term sustainability. The loan will help address challenges such as unbalanced allocation of water resources, inadequate consideration of climate change in planning and development, involvement of multiple agencies at the national and regional level, and impacts from unplanned land use and deforestation. The program will provide technical assistance and capacity building to support the Ministry of Water Supply and Estate Infrastructure Development and NWSDB in formulating, deploying, implementing, and monitoring reform initiatives.

Established in 1966, the Asian Development Bank (ADB) is owned by 68 members with 49 members from the region. ADB’s Technical Assistance Special Fund will contribute $500,000 towards supporting Sri Lanka’s water supply and sanitation sector reforms, while the Water Innovation Trust Fund will finance $300,000. The program aims to improve governance and sustainability in the water supply and sanitation sector in Sri Lanka by establishing policies and strategies at the national and NWSDB levels, as well as supporting the implementation of reform actions and guidelines. ADB’s support will help strengthen mechanisms to ensure adequate access to safe water and address governance challenges to enable the participation of the private sector.

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News Room September 12, 2024
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