The International Development Association (IDA) of the World Bank agreed to provide financial assistance of SDR 117.4 million (US$ 165 million equivalent) to support the Water Supply and Sanitation Improvement Project, the Finance Ministry said yesterday.

Dr. R H S Samaratunga, Secretary, Ministry of Finance and Ms. Francoise Clottes, Country Director of the World Bank signed the agreements Friday at the Ministry of Finance.

The funds will be mobilized through the National Budget during the period 2015-2020.

One of the targets of the Government in relating to the Water Sector in Sri Lanka is to increase piped water coverage from the existing level of 45 percent to 60 percent by 2020.

Under the Water Supply and Sanitation Improvement Project 2015-2020, access to pipe borne water services will be increased in 540 most needy Grama Niladhari (GN) divisions in districts of Mullaitivu, Kilinochchi, Nuwara-Eliya, Badulla, Kegalle, Monaragala and Ratnapura.

The objectives of the project are also to improve sanitation facilities of targeted groups in those districts and to strengthen the capacity of the Department of National Community Water Supply (DNCWS).

The funds would directly benefit an estimated 426,000 people (approximately 107,000 households) with safe piped water supply, of which approximately 26,300 households are in towns, 15,800 households in estates and the remaining 64,900 households are in rural areas. Sanitation programs will benefit approximately 43,000 families to build the individual latrines in rural areas and estates.