Govt. to secure US$ 200mn ADB loan for Mahaweli Water Security Investment Programme

The Cabinet of Ministers this week approved a proposal to enter into a loan agreement with the Asian Development Bank (ADB) to secure US$ 200 million for the implementation of the second stage of the Mahaweli Water Security Investment Programme.

The proposal, submitted by President Anura Kumara Dissanayake in his capacity as Minister of Finance, Planning, and Economic Development, aims to fund the project, which has a total estimated cost of US$ 536.5 million.

The project focuses on completing the irrigation infrastructure of the North Central Province main canal and establishing commercial agriculture development programmes with improved water distribution systems in affiliated areas. 

According to the Government Information Department, the initiative will support major irrigation schemes including Hurulu Wewa, Manakkattiya Wewa, Eru Wewa, Mahakandarawa Wewa, Nachchaduwa Wewa, Nuwara Wewa, and Tisa Wewa.

Upon completion, the project is expected to provide facilities to cultivate approximately 17,500 hectares of land while ensuring drinking water for nearly 175,000 families. Cabinet approval had previously been granted in May 2025 to initiate discussions with the ADB and co-financing institutions to raise the necessary funds.