ADB offers $453m loan to Sri Lanka to resolve water scarcity in dry regions

Asian Development Bank (ADB) has agreed to provide a $453m loan to Sri Lanka to support its ongoing initiatives of improving water access in dry regions.

The loan will be used by the country to build water delivery and storage infrastructure to transfer surplus water from the Mahaweli river basin to its dry zone, where lack of water availability hits agricultural production and household incomes.

Though initiated in the 1970s, water infrastructure growth in Sri Lanka had taken a backseat due to resource constraints and conflict.

The loan will be used to build over 260km of new and upgraded canals, reservoirs, and other irrigation infrastructure by 2024.

ADB Water Resources Specialist Lance Gore said: "Sri Lanka has abundant water resources but they are not distributed evenly across the country.

"This assistance will allow the government to complete a decades-old programme to transfer water from the country’s largest river to the dry zone, giving a real boost to growth, food security, and poverty reduction."

The dry zone region in Sri Lanka includes the North Central Province, Central Province, North Western Province and Eastern Province.

The region accounts for almost one-third of the country’s population. About 70% of the rural residents in the region are dependent on agriculture, which has been affected due to prolonged water scarcity issues.

The zone receives 1,500mm of rain per year, which is expected to reduce further due to climate changes.

Besides, the area is also expected to see growth in population which will raise the demands for water there.

ADB will carry out the investment programme in three phases, the first of which has been scheduled to start in July. The entire programme is likely to be concluded by December 2024.

ADB funds will also be used for studies aiming at improvement water management and delivery systems in the country.

Besides being used for arranging surplus irrigational water, the investment will also support potable water supply for more than 350,000 people.

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Image: A farmer near Vavunikulam in Sri Lanka whose crops have benefited from an ADB-assisted water infrastructure project. Photo: courtesy of Asian Development Bank.