The Cabinet has approved a proposal to obtain US$ 100 million in policy-based financing from the Asian Development Bank (ADB) for Sri Lanka’s Water Supply and Sanitation Reform Programme.
The money will fund the second sub-programme of the reform programme.
Policy-based financing is lent to governments to support reforms in a sector, rather than to pay for individual construction projects. The reforms concern how water supply and sanitation services are run, which affects households and businesses that rely on them.
The Cabinet decision allows the government to proceed with obtaining the financing from the ADB.
