Water, a basic human need has multi pronged links to sustainable economic and social development.Access to safe water and proper sanitation facilities are recognized as key components and indicators in human development.

The Majority of Millennium Development Goals also have close connections to safe water and sanitation. The institutional structure of water supply and sanitation levels in Sri Lanka has three levels such as; Central Government, Provincial Councils and Local Government Authorities. While the principal authority National Water Supply and Drainage Board operates across the country in water supply.

Sri Lanka has achieved a relatively higher standard in the supply of drinking water compared to other developing countries. At present around 85% of the population has access to safe drinking water. Yet, sector wise coverage varies from 95.9% in urban areas to 61% in rural areas and the estate sector. During the last three decades Sri Lanka also accomplished remarkable progress in access to proper sanitation facilities, the Department of External Resources Ministry of Finance Planning 2008 report noted.

As per the 2001 census, the access to improved sanitation in urban areas was 77.8% while it was 67.5% in rural areas and 43.2% in the estate sector. The target of the government is to provide access to safe water to 100% of the urban population, 90% of the rural and 80% in the estate sector in 2016. Similarly, improved sanitation for 95% of the urban population 85% rural and 75% of the estate sector, the report said.

According to the report, the major investment in the provision of safe water and sanitation comes in the form of foreign aid. In the year 2007 the commitment of foreign aid to the water sector was US$ 254.8 million and in 2008 donors committed US$ 231.9 million by the end of September. Currently, there are 20 donor funded water sector projects being implemented with a total committed un-disbursed balance of US$ 596.6 million.

The approach of the government to provide safe drinking water and proper sanitation is two pronged. While, pipe borne water is provided to urban and newly industrialized rapidly expanding areas, safe drinking water and sanitation to backward rural districts are provided through community based water and sanitation systems. Such projects are being implemented in Batticaloa, Hambantota, Polonnaruwa, Anuradhapura and Muttur.