It will help Sri Lanka develop a national water use plan by updating the existing Mahaweli water resources development plan which includes a development plan for the Mundeni Aru river basin.
Feasibility studies of priority water development options will be done.
"Improving the institutional capacity for integrated and multi-sectoral water resources planning and prioritization of water resources development investments is critical for Sri Lanka’s development," Naoko Ishii, World Bank's country director for Sri Lanka, said in a statement.
"The damage caused by the tsunami disaster has deepened the need and urgency for the country to protect the public from natural disasters."
Many of Sri Lanka’s 350 medium and large dams are ageing and have structu