Cabinet approves $ 200 m ADB financing for water, skills reforms

Wednesday, 14 October 2026 00:10 - - {{hitsCtrl.values.hits}}

Cabinet Spokesperson and Minister

Dr. Nalinda Jayatissa

The Cabinet has approved two Asian Development Bank (ADB) facilities totalling $ 200 million to fund reforms in water supply and sanitation and in technical and vocational education, Cabinet Spokesperson and Health and Mass Media Minister Dr. Nalinda Jayatissa said yesterday.

He was speaking at the media briefing on decisions taken at Monday’s (12) Cabinet meeting. Dr. Jayatissa said the first $ 100 million will fund Sub-program 2 of the Water Supply and Sanitation Reform Program. The money comes from a $ 620 million policy-based loan approved by the Cabinet on 16 March, 2026. That loan is spread across five sub-programs and is linked to the International Monetary Fund’s (IMF) Extended Fund Facility (EFF) program. A policy-based loan is released when agreed policy reforms are completed, rather than being tied to specific projects.

The water program is aimed at fixing weak water resources management, operational and financial inefficiencies, exposure to climate risks, gaps in social inclusion and poor coordination among stakeholders.

The second $ 100 million will fund the Skills Development System Transformation Program. It supports policy reforms to build an effective technical and vocational education and training system. The facility is results-based, meaning funds are released as agreed targets are met. The Cabinet authorised loan talks on 24 August, 2026, and the Department of External Resources negotiated with the ADB the following day.

For both facilities, $ 50 million comes from the ADB’s regular ordinary capital resources and $ 50 million from its concessional ordinary capital resources, which carry softer terms. The President presented both proposals.