gov lk large

Mahamodara Maternity Hospital is being reconstructed with the financial assistance from KfW, Germany. KfW has initially extended a loan of Euro 28 mn to complete the reconstruction work of the hospital which was initiated by a grant from the Helmut Kohl Foundation. Further, KfW has extended a supplementary loan of Euro 13 mn to cover the cost escalation and additional requirements of the hospital. The construction work of the hospital is nearing completion and it is expected that the hospital could be commissioned in mid-2020.

Meanwhile, the German Government has agreed to provide a grant of Euro 2.1 mn to be utilized for technical assistance. Areas of technical assistance financed by the grant will include support to the introduction of a Hospital Management Information System (HMIS) (incl. procurement and installation of hardware and software as well as staff training in line with the national HMIS); support to the strengthening of the hospital equipment and building maintenance systems (incl. the development and introduction of maintenance plans, training of maintenance technicians and medical staff, procurement of maintenance equipment); support to the strengthening of the quality management system with a particular focus on highly sensitive areas such as intensive care and hospital hygiene; and provision of training and further education of medical staff through twinning arrangements with international hospitals.

R M P Rathnayake, Director General, Department of External Resources signed the inter-government agreement and grant agreement (financing agreement)   on 17 December 2019 on behalf of Government of Sri Lanka respectively with German Government and KfW. H.E. Jorn Rohde, German Ambassador to Sri Lanka and Ms. Andreas Godon, Principal Project Manager, KfW Development Bank signed the agreements on behalf of German Government and KfW.

                                               Issued by the Department of External Resources on 17th December 2019




 DSC 1990

The Government of Sri Lanka and the Asian Development Bank (ADB) entered into a Framework Financing Agreement on 14th August, 2017 with regard to the financial arrangements for the Second Integrated Road Investment Program.The investment program will improve the accessibility to the road network from rural areas and thereby increase the contribution of the rural population for economic and social development of the country.

The total estimated cost of the programme is USD 1084 million, out of which USD 900 million will be obtained in several tranches from ADB. The first tranche amounting to USD 150 million obtained in 22nd November, 2017 is being invested in the ongoing project activities and the subsequent tranches are planned to be obtained based on the financing requirements of the Program.

The Second Integrated Road Investment Program will upgrade and maintain 3400 km of rural access roads and 340 km of national roads in Northern, Eastern, Uva, and Western Provinces. In addition, improvement of capacity of road agencies with respect to safeguards, road safety, maintenance, research, road design and construction will be carried out under the program.


In this connection, Dr. R H S Samaratunga, Secretary of the Ministry of Finance entered into a loan agreement with ADB on behalf of the Government of Sri Lanka and Mr. Nihal Sooriyarachchi, Chairman of Road Development Authority entered into a Project Agreement with ADB on the 13th November, 2019, at the Ministry of Finance. Ms. Manjula Amerasinghe, Officer in Charge of ADB, Sri Lanka Resident Mission signed the two agreements on behalf of ADB.

Issued by the Department of External Resources on 13th November, 2019.



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 9th 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.


Rehabilitation of the A017 Road Corridor from Deniyaya to Rakwana is very important in the national road network improvement. This rehabilitation Project is phased out in two stages whereas Stage I from Suriyakanda to Rakwana (about 18 km) and Stage II from Deniyaya to Suriyakanda (35km). By way of the overall objective of first phase of the project providing access to Suriyakanda with improved transport infrastructure, as it is an important trade hub, with very limited connectivity. This road rehabilitation project will provide links to three 'A' class roads and to ten 'B' class roads by rehabilitating of 18.0 km of a critical section of Rakwana Deniyaya road connecting the Southern Province to the Sabaragamuwa Province. This will improve the road network connectivity, reduce vehicle operating costs, enhance highway capacity and level of service, thus promoting economic activity and contributing to the overall socio-economic development of the country.

In this context, the OFID has agreed to provide a loan of USD 40.0 million in support of the above project and the balance USD 11.75 million will be borne by the GOSL. The OFID is our long term development partner since its establishment in 1976 and has extended fourteen loans to Sri Lanka, of which two have been for balance of payments support and the others for projects.

Accordingly, the Loan Agreement has been signed today, 30th October 2019 at Vienna by Dr. R.H.S. Samaratunge, Secretary to the Ministry of Finance on behalf of the Government of Democratic Socialist Republic of Sri Lanka and H.E.Abdulhamid Al-Khalifa, Director General on behalf of the OPEC Fund for International Development.

Ministry of Finance

Colombo 01

Sri Lanka

On 1st November 2019


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, 18thSeptember 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 18thSeptember 2019



Project Name

Agreement Date

Loan Amount  USD Mn.


Colombo Water Supply and Sewerage Project




Electric Power Transmission Project




Mahaweli Ganga Development Project System B Left Bank




Development of Health Facilities in Colombo Hospital




Batticaloa – Trincomalee Road Development




Epilepsy Hospital and Health Centers Project




Development of Health Facilities in Colombo Hospital – Additionl Finance




Kalu Ganga Development Project




Road Network Development Project




Improvement of Peradeniya – Badulla – Chenkaladi Road




Epilepsy Hospital and Health Centers Project – Additional Finance




Left Bank Development Project in Kalu Ganga




Wayamba University Township development Project




Kalu Ganga Development Project – Additional Finance




Construction of Medical Faculty at the Sabaragamuwa University

Not yet signed


FaLang translation system by Faboba