The European Investment Bank (EIB) will provide EUR 50 million to support improvement and expansion of sewerage networks across Colombo.
The loan will help the Colombo Municipal Council to achieve its goal of providing full sanitation coverage to benefit people living and working in the greater Colombo area.
The loan is European Investment Bank’s first ever support for water investment in Sri Lanka and the first loan for public sector investment agreement with the post civil-war government.
“New support from the European Investment Bank will help unlock essential new investment to improve sanitation in Colombo. I look forward to strengthening cooperation between the EIB and Sri Lanka in the years to come,” said Minister of Finance, Ravi Karunanayake following his meeting in Brussels with senior European Investment Bank officials responsible for lending in South Asia.
“Increased access to sanitation to be achieved by this project will improve the lives of thousands of people living in Colombo and contribute to the achievement of sustainable development goals in Sri Lanka,” he said.
“The fruitful discussions with Ministers Ravi Karunanayake and Minister of Development Strategies and International Trade, Malik Samarawickrama have outlined how the EIB’s global experience can support new investment to improve lives and enhance opportunities in Sri Lanka,” said European Investment Bank, Vice President, Andrew McDowell.
The European Union Ambassador to Sri Lanka and the Maldives, Tung-LaïMargue said, “This loan is a further example of the European Union’s support for Sri Lanka’s long-term development. Studies show that modern sanitation is one of the most important factors in people’s health and well-being.” The 25-year long-term loan was formally agreed at a signature ceremony in Brussels by Karunanayake, and Samarawickrama, and European Investment Bank Vice President Andrew McDowel. The loan is the EIB’s fifth sovereign loan to the country.
After completion, the upgraded water network will enable clean water to be supplied 24-hours-a-day, seven-days-a-week, compared to the currently restricted service. The new water investment program will include provision of a new sewage network in currently un-served areas of Kirillapone. A new wastewater treatment facility will also be built to reduce pollution at the Wellawatte sea outfall.
“It is encouraging to see others joining in this effort to improve Colombo city dwellers’ quality of life,” said Country Director, Sri Lanka Resident Mission, Asian Development Bank, Sri Widowati.