| Project Detail |
Project Name
Water Supply and Sanitation Reform Program (Subprogram 1)
Project Number
56281-001
Country / Economy
Sri Lanka
Project Status
Proposed
Project Type / Modality of Assistance
Loan
Technical Assistance
The proposed Water Sector Reform Program aims to implement a series of water sector reforms in Sri Lanka by addressing vulnerabilities for improved sector performance and environmental sustainability. The policy support will contribute to resilient and sustainable water and sanitation services delivery in accordance with Strategy 2030 of the Asian Development Bank (ADB). It aligns with five operational priorities: 1 (poverty), 2 (gender equality), 3 (climate change), 4 (livable cities), and 6 (governance). The program is also aligned with ADBs country partnership strategy (CPS) for Sri Lanka, 2018-2022, which emphasizes the need to strengthen the institutional capacity of state-owned enterprises (SOEs) involved in infrastructure and utilities.
Project Rationale and Linkage to Country/Regional Strategy
After Sri Lanka was hit by the Easter Sunday attacks on 21 April 2019, the coronavirus disease pandemic and the Russian invasion of Ukraine further aggravated the countrys economic vulnerability to external shocks. In addition, in 2018, Sri Lanka lost around 1.24% of its gross domestic product (GDP) due to climate change. Sri Lankas GDP growth decreased from an average of 6.4% in 2010-2016 to an average of 2.9% in 2017-2019 (-0.2% in 2019) and further contracted in 2020. The economy grew 3.5% in 2021, but the recovery was short-lived, as growth contracted 7.8% in 2022. The Government of Sri Lanka has requested financial assistance from ADB to support its effort to implement economic policies and reforms supported by the International Monetary Fund (IMF) Extended Fund Facility (EFF) arrangement to restore macroeconomic stability and debt sustainability. Partnership with ADB will boost the governments efforts to improve the sectors sustainability, performance, resilience, equity, and inclusivity. The program is aligned with the countrys overarching development objective for implementing structural reforms that will strengthen governance and promote green economic growth while ensuring the protection of all citizens. |
