ADB Approves $300 Million for Sri Lanka Water and Sanitation

The Asian Development Bank (ADB) has approved $300 million in financing for two projects to expand climate-resilient water supply and sanitation services across Sri Lanka. Announced on 9 November 2026, the package includes $200 million to improve access to safe drinking water for more than 1.3 million people in the Western and Southern provinces and upgrade sanitation services for nearly 250,000 residents of Jaffna. An additional $100 million will support reforms to strengthen water sector governance, financial sustainability and climate resilience.

 

The $200 million Climate-Resilient Sustainable Water Supply and Sanitation Project will finance new water treatment plants, transmission and distribution networks, and storage reservoirs in Colombo and Lunugamwehera. In Jaffna, the investment will support wastewater treatment facilities, sewerage networks and pumping stations. The project will also focus on reducing water losses, promoting renewable energy use and improving the operational capacity of the National Water Supply and Drainage Board (NWSDB). These improvements are intended to increase service reliability while strengthening infrastructure resilience against natural hazards and extreme weather.

 

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The remaining $100 million will finance the second subprogramme of the Water Supply and Sanitation Reform Program, ADB's first policy-based lending initiative in Sri Lanka's water sector. Building on earlier reforms, the program will strengthen water resource management, sanitation planning and climate adaptation. It also supports amendments to the National Water Resources Policy, tariff reforms and implementation of the NWSDB's financial sustainability roadmap. These measures aim to improve operational efficiency and attract greater private sector participation in future water infrastructure investments.

 

Shannon Cowlin, ADB Country Director for Sri Lanka, said, "Access to safe, reliable, and sustainable water and sanitation services is essential for public health and economic growth." She emphasized that the projects would strengthen water sector governance, improve service delivery and support more resilient institutions. The financing also aligns with Sri Lanka's wider reform agenda, which aims to improve essential public services and promote green economic growth.

 

The combined investments will address infrastructure development and institutional challenges affecting Sri Lanka's water sector. By improving access to drinking water, expanding sanitation infrastructure, and strengthening financial management, ADB aims to support long-term water security and public health. Implementation will involve infrastructure upgrades and policy reforms intended to make water services more resilient to climate-related disruptions.

 

Source: The Asian Development Bank (ADB)