International Economic Developments

Sri Lanka Secures $200 Million for Mahaweli Water Security

Sri Lanka’s Mahaweli water security program received a boost as the government approved seeking $200 million from the Asian Development Bank. The funding aims to expand irrigation and provide drinking water for thousands of households.


Sri Lanka’s Mahaweli water security project gains ADB support for irrigation and drinking water


Sri Lanka is moving forward with its Mahaweli water security program, securing potential funding of $200 million from the Asian Development Bank (ADB) to support the second stage of the Mahaweli Water Security Investment Program. The initiative, announced by Minister Nalinda Jayatissa, is designed to enhance both irrigation capacity and drinking water access for communities across the country.

The total cost of the second stage of the project is estimated at $536.5 million, with Sri Lanka hoping to obtain $200 million as a loan from the ADB. The funding will be instrumental in supporting large-scale irrigation and water distribution projects, particularly benefiting agricultural areas dependent on the Mahaweli river system.

This stage of the program is expected to facilitate the cultivation of approximately 17,500 hectares of farmland, strengthening food security and improving livelihoods for farmers. In addition, the initiative will provide safe drinking water to around 175,000 families, ensuring access to essential resources in both urban and rural communities.

The Mahaweli Water Security Investment Program encompasses multiple reservoirs, including Hurulu, Manakattiya, Eru, Mahakanadarawa, Nachchaduwa, Nuwara, and Tisa. Upgrading these irrigation systems will enhance water management, optimize agricultural output, and improve resilience against droughts and seasonal variability. By integrating modern water infrastructure, the project aims to maximize water efficiency while ensuring sustainable use of resources.

Minister Jayatissa emphasized that the program will play a pivotal role in Sri Lanka’s long-term agricultural planning. “This investment is vital for ensuring the Mahaweli river system can meet both agricultural and household needs,” he said. “The support from the ADB will help us modernize irrigation infrastructure and expand water access to vulnerable communities.”

Beyond irrigation, the Mahaweli water security project is expected to foster broader socio-economic benefits. Improved water access for farmers can lead to higher crop yields and more stable incomes, while communities gaining safe drinking water will experience enhanced health outcomes and better quality of life. The program aligns with Sri Lanka’s strategic goals of sustainable water management and climate resilience.

ADB’s involvement reflects the international community’s commitment to supporting Sri Lanka’s infrastructure development and water security priorities. The bank’s technical and financial support will facilitate efficient implementation, project monitoring, and integration of modern technologies for sustainable water management.

By securing this funding, Sri Lanka reinforces its dedication to tackling water scarcity challenges and supporting agriculture-dependent communities. The Mahaweli water security program is not only a critical investment in infrastructure but also a long-term strategy for ensuring the country’s resilience to climate-related risks and population growth pressures.

As Sri Lanka progresses with this initiative, stakeholders anticipate tangible improvements in irrigation efficiency, crop productivity, and water availability for households. The Mahaweli water security program demonstrates the country’s proactive approach to managing natural resources while fostering economic and social development across multiple regions.