The Hungarian Export Import Bank will provide 16.714 million US dollars to rehabilitate a treatment plant in Labugama and 17.383 million to a plant in Kalatuwawa. There will be 50 percent Hungarian content.
The loans will have an interest rate of 1.1 percent. The loans are repayable over 15 years including a grace period of 3 years.
The plants are operated by Sri Lanka's National Water Supply and Drainage Board.
The agency had also obtained an Asian Development Bank credit to upgrade distribution and trim leakages.