The Government of Sri Lanka had discussions with the Asian Development Bank (ADB) to mobilize a loan amounting to USD 200 million to continue the Mahaweli Water Security Investment Program (MWSIP) – Stage 2 as a priority project of the Government. The loan will cover a part of the total project cost.
The MWSIP-Stage 2 which supports for enhancing food and water security and building climate resilience, comprises of two components. (1) completion of the North Central Province Canal irrigation infrastructure (2) establishing commercial agriculture development with distribution networks. Following activities will be implemented under these two components.Completion of the remaining section of the main tunnel, including tunnel excavation of approximately 7 km and finishing works.
I. Construction of open or covered canals, conducts, and small tunnel sections with a total length of approximately 68 km.
II. Construction of approximately 8 km of Ellapothana Irrigation Extension Canal.
III. Establishment of Commercial Agricultural Development with improved distribution networks by establishing approximately 13 pressure distribution networks to provide reliable and efficient irrigation water for high value crops and field crops.
IV. Transformation of agricultural production systems through introduction of climate resilient value chains and expanding access to financial services and agriculture extension services for farmers.
The objective of the project is to enhance agricultural productivity, farmer incomes, and climate resilience in the North Central Province (NCP).
Accordingly, the above-mentioned loan agreement was signed at the Treasury in Colombo by Dr. Harshana Suriyapperuma, Secretary, Ministry of Finance, Planning and Economic Development, on behalf of the Government of Sri Lanka, and Mr. Takafumi Kadono, Country Director, ADB Sri Lanka Resident Mission, on behalf of the Asian Development Bank on 15 December 2025.
Ministry of Finance, Planning and Economic Development
15 December 2025