It will provide pipe-borne drinking water for 65,000 beneficiaries in the Katana Secretarial Division of the Gampaha District. The water project aim to reduce chronic kidney disease in Sri Lanka.

The Cabinet paper to secure funding, presented by City Planning and Water Supply Minister Rauf Hakeem, was passed by the ministers.

Under the new project, which were given approval in July 2015, the China Development Bank will fund 85% of the total project cost. For the Katana water supply project the cost will be $35.5 million along with Rs. 4 billion from Chinese funding while another Rs. 2 billion will be provided by the Sri Lankan Government as their 15%.

The Government share will be mostly used to cover taxes including VAT, land acquisition and project management costs.