ADB's $300M Water Plan Targets Safer Supplies and Sanitation in Sri Lanka

The larger investment, a $200 million Climate-Resilient Sustainable Water Supply and Sanitation Project, will improve access to safe and reliable water for more than 1.3 million people in Sri Lanka's Western and Southern provinces.

The Asian Development Bank (ADB) has approved two projects worth a combined $300 million to improve access to safe drinking water and sanitation services across Sri Lanka, bringing new infrastructure and stronger public services to communities facing water supply challenges. The financing will support the construction of water treatment facilities, improvements to wastewater management and reforms intended to make the country's water sector more reliable and financially sustainable. Millions of daily activities, from household needs to businesses and public health services, depend on dependable water supplies, making these investments important for communities and the country's economic development.

The larger investment, a $200 million Climate-Resilient Sustainable Water Supply and Sanitation Project, will improve access to safe and reliable water for more than 1.3 million people in Sri Lanka's Western and Southern provinces. Nearly 250,000 residents of Jaffna in the Northern Province are also expected to benefit from improved sewerage and sanitation facilities designed to strengthen wastewater management and reduce environmental health risks. The project will focus on developing essential infrastructure capable of maintaining services during changing weather conditions and growing pressure on existing water systems.

A separate $100 million investment under the Water Supply and Sanitation Reform Program will help Sri Lanka improve how water services are managed, financed and delivered to communities. ADB Country Director for Sri Lanka Shannon Cowlin highlighted the importance of dependable water and sanitation services for public health and economic growth, stressing the need for stronger governance, resilient institutions and greater private sector involvement. The financing combines physical infrastructure improvements with policy reforms intended to support reliable services and the country's broader efforts to strengthen public institutions and promote environmentally sustainable economic growth.

New Water Treatment Plants and Sewerage Networks to Improve Daily Life

The $200 million infrastructure project will support the construction of climate-resilient water treatment plants, transmission pipelines, distribution networks and storage reservoirs in Colombo and Lunugamwehera. These improvements are expected to strengthen the delivery of treated water, increase storage capacity and help communities receive more consistent supplies during periods of high demand or environmental disruption. New and upgraded infrastructure will also support efforts to reduce water losses, an important concern for utilities working to improve efficiency and maintain affordable services.

In Jaffna, the investment will finance wastewater treatment facilities, sewerage networks and pumping stations to improve the collection and treatment of wastewater. Better sanitation infrastructure can help reduce exposure to untreated sewage, protect local water resources and improve living conditions for households that depend on safe and hygienic surroundings. The project will promote renewable energy use, strengthen the National Water Supply and Drainage Board (NWSDB) and encourage private sector participation in developing and managing water services.

Strengthening Water Sector Governance and Financial Stability

The second investment will provide $100 million for the next stage of Sri Lanka's Water Supply and Sanitation Reform Program, building on policy changes introduced under its first subprogram. It forms part of ADB's first policy-based lending programme in the country's water sector, supporting government reforms intended to improve institutional performance and attract private investment. The programme focuses on creating a stronger management system in which public agencies can plan improvements, maintain infrastructure and respond more effectively to the needs of water consumers.

A major part of the reform effort involves proposed amendments to the National Water Resources Policy, changes to water tariffs and stronger financial management within the NWSDB. The programme also supports the implementation of the board's financial sustainability roadmap, improved corporate performance monitoring and greater opportunities for private financing of future water investments. These changes are intended to help water institutions manage operating costs, improve accountability and secure the resources needed to maintain dependable services over the coming years.

Preparing Sri Lanka's Water Services for Climate and Environmental Risks

Sri Lanka's water infrastructure faces pressure from natural hazards, extreme weather and the growing need for reliable services, making climate resilience an important part of ADB-supported investments. The reform programme will strengthen water resource management, improve water safety and sanitation practices, and introduce a resilience roadmap to guide the water supply and sanitation sector. Greater attention to environmental sustainability and disaster preparedness is expected to help institutions protect infrastructure and maintain essential services when communities face disruptions.

The two investments support Sri Lanka's wider economic reform agenda by connecting infrastructure development with better management, financial planning and environmental protection. Stronger water institutions, improved sanitation networks and greater private sector participation could help create a more sustainable system capable of serving communities across different regions. For households in Colombo, Lunugamwehera, Jaffna and other project areas, the expected benefits include safer water supplies, improved sanitation and public services better prepared for future challenges.