The Asian Development Bank (ADB) has approved two projects totaling $300 million to expand and strengthen water supply and sanitation services across Sri Lanka.
“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 Climate-Resilient Sustainable Water Supply and Sanitation Project will provide $200 million to improve access to reliable and safe water supply services for more than 1.3 million people in the Western and Southern provinces, while improving sewerage and sanitation services for almost 250,000 people in Jaffna in the Northern Province.
The project will build new resilient water treatment plants, transmission and distribution networks, and storage reservoirs in Colombo and Lunugamwehera. It will also develop wastewater treatment facilities, sewerage networks, and pumping stations in Jaffna. The project will help reduce water losses, promote renewable energy use, strengthen the capacity of the National Water Supply and Drainage Board (NWSDB), and support private sector participation in the water sector.
The $100 million second subprogram of the Water Supply and Sanitation Reform Program—ADB's first policy-based lending program in Sri Lanka’s water sector—builds on reforms introduced under the first subprogram. It will strengthen water governance and service delivery and mobilize private sector financing for future investments.
The program supports reforms in two key areas. First, it strengthens resilience, inclusion, and environmental sustainability through improved water resources management, water safety, sanitation management, and natural hazard adaptation. Second, it strengthens governance and operational and financial performance through amendments to the National Water Resources Policy, tariff reforms, adoption of a resilience roadmap for the water supply and sanitation sector, stronger corporate performance management, implementation of NWSDB’s financial sustainability roadmap, and increased private sector participation. It is aligned with Sri Lanka’s broader reform agenda to improve public services and promote green economic growth, while supporting the country’s commitment to address the impacts of natural hazards and extreme weather events. Together, these investments and reforms will help deliver safer, more reliable, and more resilient water and sanitation services for communities across Sri Lanka.
ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.
