Press Releases

The European Union (EU) will step up its assistance to Sri Lanka, by providing Euro 40 million (approximately LKR 7,932 million) for the implementation of Strengthening Transformation, Reconciliation and Inclusive Democratic Engagement (STRIDE) Project. Secretary to the Ministry of Finance, Dr. R. H. S. Samaratunge signed the agreement on 9^th October 2019 on behalf of the Government of Sri Lanka in the presence of Ambassador to Sri Lanka and the Maldives for the Delegation of the European Union, H.E. Tung Lai Margue.

The project will be implemented in the Northern, Eastern, North Central and Uva Provinces with the indirect management of the World Bank (WB), UNDP, and the British Council.

In partnering with the WB, the EU will allocate Euro 22.5 million from its grant funds of the STRIDE Project to the ‘Performance Grant Scheme’ of the “Local Development Support Project” which is financed by the World Bank (USD 70 million). Local Development Support Project aims to support development in war affected and lagging provinces, improve coordination in local service delivery and promote economic opportunities, inclusiveness, and social cohesion.

The EU will provide Euro 10 million under the STRIDE Project for financing the capacity development of local authorities and communities to plan and manage above performance grants initiatives.

Local mediation boards will be strengthened under this project focusing on effective judicial processes and improving the mediation mechanisms. The EU will provide Euro 7 million for financing this component.

The public security in Sri Lanka was threatened by the Easter Sunday terrorist attacks with a huge negative economic impact on the fast growing tourism sector of the Country.As an immediate response to the incident,the Government of Japan has agreed to provide Japanese Yen 01 billion, (approximately Rs. 1.6 billion) grant under the Japanese Government’s non - project grant aid scheme for the provision of necessary equipment to strengthen the capacity of Sri Lanka Police and Airport and Aviation Services (Sri Lanka ) Limited on counterterrorism activities.

Accordingly, the necessary equipment for surveillance and detection will be provided by the Government of Japan to Sri Lanka Police and to the Airport and Aviation Services (Sri Lanka) Limited, through the Ministry of Defence and the Ministry of Transport and Civil Aviation respectively to ensure the public security and for the safety of air passengers.

The signing of Exchange of Notes pertaining to the above Grant Aid took place today, at the Ministry of Finance.

Dr. R.H.S. Samaratunga, Secretary, Ministry of Finance on behalf of the Government of Sri Lanka and H.E. Mr. Akira Sugiyama, Ambassador, Embassy of Japan in Sri Lanka on behalf of the Government of Japan signed the above Exchange of Notes.

In line with the Government Policy Framework “Vision 2025”, the Government views the provision and improvement of social goods such as education, skill development, and healthcare as part and parcel of its development agenda. According to the available information of the Ministry of Health, Nutrition and Indigenous Medicine, the number of Medical Officers per 100,000 populations in Sri Lanka is about 77. However, as per the World Health Organization, Medical Officer's density per 100,000 populations in developed countries trial than the Sri Lanka rate.

Thus, the Government will take steps to increase tertiary education by increasing the state university enrolment. As the Government strives to extend the benefits of development to every part of the country, establishing healthcare facilities of appropriate standards should be accompanied by quality and trained health care professionals in the country.

Accordingly, the Government of Sri Lanka has already approved the establishment of the Faculty of Medicine at Sabaragamuwa University and has allocated necessary funding through the budgetary allocations of the year 2017. Further, the first batch of students for the Medical Faculty has been enrolled.

In this context, SFD has agreed to provide a concessional loan amounting of Saudi Riyal 187.5 Million (approximately USD 50 million) to establish a Medical Faculty in University of Sabaragamuwa. The balance USD 20.46 million will be borne by the GOSL.

The cooperation between the Government of Sri Lanka and the Kingdom of Saudi Arabia was initiated with extending a loan of US$ 30 million for Second Water Sector & Sewerage project in 1981 through the Saudi Fund for Development. The development projects financed by the Saudi Fund Development by providing concessional financing are significant milestones of the relationship between the two countries. The total amount of loans extended by the SFD as at the end of 2018 was US$ 386 million. The priority areas of the SFD assistance are; Road, Health, Irrigation & community Development sectors, Higher Education, etc.

Accordingly, the Loan Agreement has been signed today, 18^thSeptember 2019 at the Ministry of Finance byDr. R.H.S. Samaratunge, Secretary to the Ministry of Finance on behalf of the Government of Democratic Socialist Republic of Sri Lanka H.E. Dr. Khaled SulaimanAlkhudairy, Vice Chairman & Managing Director on behalf of the Saudi Fund for Development.

Ministry of Finance

Colombo 01

Sri Lanka

On 18^thSeptember 2019

The Government has mobilized Loan assistance amounting to USD 160 million from the Asian Development Bank (ADB) to cater to the increasing demand of the Railway Sector through modernization of the railway operations and thereby improving the efficiency of services provided by Sri Lanka Railways.

The total estimated investment cost of the Project is USD 192million and the Government contribution to the project will be USD 32million.

The Railway Efficiency Improvement Project, which is initial investment of a long term sector development plan, will finance the modernization of the country’s railway system in several aspects by improving the operations, maintenance, safety, skills development, and technical capacity of Sri Lanka Railways. The project will provide a modern multichannel—paper, mobile, and smart card—ticketing system, and will also install a state-of-the-art telecommunications system, which will replace the original system installed in 1985. The new telecommunications system will reduce train delays by facilitating two-way communication with train drivers. The project will also finance a new operations headquarters and train control center, provide infrastructure and equipment for the maintenance of track and rolling stock, and improve railway safety. The technical training center of Sri Lanka Railways will also be upgraded under the project and new courses will be developed to provide future graduates with knowledge of modern railway technologies.

In this connection, Dr. R H S Samarathunga, Secretary to the Ministry of Finance on behalf of the Government of Sri Lanka and Ms. Manjula Amarasinghe, Officer In Charge of ADB Sri Lanka Resident Mission on behalf of ADB, signed the Loan Agreement to obtain USD 160 million on 20^th August 2019 at the Ministry of Finance.