• The Asian Development Bank (ADB) has approved a $100 million loan to support Sri Lanka's water supply and sanitation sector reforms.
• The loan is part of the Water Supply and Sanitation Reform Programme, aimed at establishing efficient policies and strategies for water supply and sanitation.
• The second part of the programme supports the implementation of these reform actions and guidelines.
• The ADB's loan is expected to help Sri Lanka address its water challenges and improve its water resources management.

In a significant move to bolster Sri Lanka's water supply and sanitation sector, the Asian Development Bank (ADB) has approved a policy-based loan of 100 million US dollars. This financial aid is aimed at supporting the island nation's reforms in these critical sectors, with a particular focus on enhancing resilience to climate change impacts and promoting long-term sustainability.

The ADB's decision, announced on Wednesday, underscores the bank's commitment to assisting Sri Lanka in addressing its water and sanitation challenges.

The loan is part of the Water Supply and Sanitation Reform Programme, which is composed of two subprogrammes, each valued at 100 million dollars. The primary objective of these subprogrammes is to contribute to a more resilient and sustainable delivery of water supply and sanitation services.

The first subprogramme is designed to establish policies and strategies at the national level and for the National Water Supply and Drainage Board. This initiative is expected to lay the groundwork for a more efficient and effective water supply and sanitation system in Sri Lanka.

Addressing Sri Lanka's Water Challenges

The second subprogramme, on the other hand, is aimed at supporting the implementation of reform actions and guidelines. This is a crucial step in ensuring that the policies and strategies developed under the first subprogramme are effectively put into action.

Sri Lanka's water resources management has been grappling with a host of challenges. These include unbalanced water allocation between agriculture and drinking water, inadequate consideration of climate change in planning and development, the involvement of multiple agencies at national and regional levels, and the adverse effects of unplanned land use and deforestation.

The ADB's loan is expected to help Sri Lanka address these issues and improve its water resources management. The ADB's loan to Sri Lanka is not an isolated event. The bank has a history of supporting countries in their efforts to improve water supply and sanitation services.

In 2019, the ADB approved a $186.8 million loan to Nepal to improve its water supply and sanitation services. The loan was aimed at helping the country achieve universal access to basic water supply and sanitation services, a goal that Nepal has set for 2030.

ADB's History of Water Sector Support

Similarly, in 2018, the ADB approved a $400 million policy-based loan to the Philippines to support the government's efforts to boost inclusive growth by implementing reforms that ensure stable and resilient water supply and sanitation services.

The loan was part of the ADB's broader support for the Philippines' infrastructure development agenda. These historical precedents highlight the ADB's commitment to supporting countries in their efforts to improve water supply and sanitation services. The bank's loan to Sri Lanka is a continuation of this commitment.