World Bank yesterday approved a US$65.33 million credit for Sri Lanka to improve the operational efficiency of some 80 ageing dams and to establish sustainable institutional arrangements for safety management and operations and maintenance of major dams in the country. Under the Dam Safety and Water Resources Planning Project improving 32 of the 80 dams that have been categorized as high risk will be the highest priority. World Bank Country Director for Sri Lanka, Ms. Naoko Ishii said the need to improve the institutional capacity for integrated and multi-sectoral water resources planning and to prioritize water resources development investments is critical for Sri Lanka's development. "The damage caused by the tsunami disaster has deepened the need and urgency for the country to protect the public from natural disasters,' she said. Many of Sri Lanka's 350 medium and large dams that have been set up centuries ago have structural deficiencies and shortcomings in operation and monitoring facilities. The dams are critical to Sri Lanka's economic growth and have sustained human settlements, particularly in rural areas. According to the World Bank the project will support the preparation of a National Water Use Plan by updating the Mahaweli Water Resources Development Plan, which entails the preparation of a Water Resources Development Plan for Mundeni Aru River Basin. Nihal Fernando, World Bank Senior Rural Development Specialist and team leader for the project said the project will improve the hydro-meteorological information system, including upgrading of 50 hydrometric stations, better flood protection procedures, and establishment of a groundwater monitoring system. The credit is from the International Development Association (IDA), the World Bank's concessionary lending arm, and has 20 years to maturity with a 10-year grace period. The total project cost is US71.66 million, of which the IDA Credit is US$ 65.33 million and the Government of Sri Lanka is contributing is US$ 6.33 million.