Jan 25, Colombo: Sri Lanka will receive US$ 45.5 million loan from the Hungarian Export-Import Bank to rehabilitate the two main potable water reservoirs and treatment plants serving the capital Colombo and suburbs.

A proposal put forward by the President, in his capacity as the Minister of Finance and Planning to obtain the loan facility has been approved by the Cabinet on Thursday.

According to the agreement, Export-Import Bank of Hungary will provide a maximum amount of US$ 22.3 million (Euro 16.71 million) to renovate the 127-year old Labugama Plant and a US$ 23.2 million (Euro 17.38 million) for the Kalatuwawa Plant.

The two plants operated by Sri Lanka's National Water Supply and Drainage Board distribute a total of 106,000 cubic meters of water per day.