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SRI LANKA

ADB Commits $300 Million to Sri Lanka Water Plants, Sewerage and Tariff Reforms - ESG News

Lanka Hit News • Nov 9, 2026 · 7h ago • 2 min read
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The Asian Development Bank (ADB) has approved two projects totaling $300 million to expand and strengthen water supply and sanitation services across Sri Lanka. A $200 million infrastructure project accounts for most of the funding, while a $100 million reform program makes up the rest.

The Climate-Resilient Sustainable Water Supply and Sanitation Project targets more than 1.3 million people in the Western and Southern provinces. It will build resilient water treatment plants, transmission and distribution networks, and storage reservoirs in Colombo and Lunugamwehera. “Access to safe, reliable, and sustainable water and sanitation services is essential for public health and economic growth,” said Shannon Cowlin, ADB Country Director for Sri Lanka.

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In Jaffna, in the Northern Province, the project will develop wastewater treatment facilities, sewerage networks, and pumping stations for almost 250,000 people. It will also help reduce water losses, promote renewable energy use, and strengthen the National Water Supply and Drainage Board (NWSDB). ADB did not disclose loan terms, construction timelines, or completion dates.

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The $100 million second subprogram of the Water Supply and Sanitation Reform Program builds on reforms from the first subprogram. It is ADB’s first policy-based lending program in Sri Lanka’s water sector, meaning funds are tied to reforms. As a result, it aims to mobilize private sector financing for future water investments. “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,” Cowlin added.

The program covers two reform areas. The first targets water resources management, water safety, sanitation management, and natural hazard adaptation. The second covers governance and finances, including amendments to the National Water Resources Policy, tariff reforms, and a sector resilience roadmap. It also aligns with Sri Lanka’s agenda to improve public services and promote green economic growth.

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