The European Union pledges Euro 43.7 million to Sri Lanka in Grant and Technical Assistance
The European Union (EU) has agreed to provide Euro 38 million (approximately Rs. 5,857 million) for the implementation of two programmes: Support to Integrated Rural Development in the Most Vulnerable Districts of the Central and Uva Provinces in Sri Lanka (Euro 30 Million) and Trade Related Assistance in Sri Lanka (Euro 8 million). The EU also agreed to provide technical assistance worth of Euro 5.7 million to National Water Supply and Drainage Board (NWSDB).
Integrated rural development is a priority for the EU in Sri Lanka, with support focusing on helping people to improve their lives. The Support to Integrated Rural Development in the Most Vulnerable Districts of the Central and Uva Provinces in Sri Lanka is implemented under the EU's Multi-annual Indicative Programme (MIP) 2014 - 2020. The MIP country strategy has allocated up to Euro 210 million grant assistance for the 2014 - 2020 period as support for integrated rural development in Sri Lanka. MIP aims to improve the quality of life in rural areas through poverty reduction, social inclusion and reconciliation, economic development and good governance while helping to ensure the sustainable use of natural resources.
The Rural Development Programme in Central and Uva Provinces (Euro 30 Million) in particular hopes to improve livelihoods, household income levels, health, nutrition and strengthen socio-economic service delivery by local authorities, community organisations and private institutions. All this will be achieved by improving rural infrastructure, local business development, job creation and by invigorating the business environment. The programme will also set up sustainable water management systems that promote safe drinking water, hygiene and nutrition. .
The Trade Related Assistance in Sri Lanka Programme (Euro 8 million) will design and implement a coherent strategy for export competitiveness that includes policies and regulatory reforms. The programme will also look at increasing trade competitiveness of Sri Lankan Small and Medium Enterprises in regional and EU markets, the regional integration process, the EU General System of Preferences (GSP+) scheme and trade negotiations.
The programme is implemented under the Asia Regional Multi-Annual Indicative Programme (ARMIP) 2014 - 2020. ARMIP is the EU's Regional Multi-Annual Indicative Programme for Asia which covers 19 countries in South and South-East Asia, including Sri Lanka. Grant assistance worth of Euro 889.5 million is allocated during the 2014 - 2020 period for the entire Asian region, to support regional integration, as aid to uprooted people and to promote a green economy.
In addition to the aforementioned, the EU will provide Euro 5.7 million worth of technical assistance to the NWSDB. This will be implemented by Agence Francaise de Developpement (French Development Agency - AFD). It complements the Sanitation and Hygiene Initiative for Towns Project (SHIFT Programme) which aims to develop collective sewerage system and sanitation solutions in Sri Lanka.The programme will analyse NWSDB requirements and capacity to expand into wastewater sector. This initiative will also look to develop the capacities of the NWSDB management and its wastewater / sewerage division's technical staff.
The two financing agreements pertaining to Support to Integrated Rural Development in the Most Vulnerable Districts of the Central and Uva Provinces in Sri Lanka and Trade Related Assistance in Sri Lanka, were signed by Dr. R. H. S. Samaratunge, Secretary to the Ministry of Finance on behalf of the Government of Sri Lanka while Mr. Neven Mimica, European Union Commissioner in charge for International Cooperation and Development signed on behalf of EU.
Mr. Nicolas Fornage, Director for South Asia of AFD signed the Technical Assistance agreement.The event also witnessed the presence of Hon. Ravi Karunanayake, Minister of Finance, H.E. Mr. Jean-Marin Schuh, Ambassador of France to Sri Lanka and Mr. Paul Godfrey - charge d'affaires of EU.
March 16, 2016
Ministry of Finance
Colombo - 01.
Economic Cooperation Policy Dialogue
Annual Consultations between Governemnt of Sri Lanka & Governmnet of Japan
First session of Economic Cooperation Policy Dialogue at the senior officials' level
Between the Governments of Sri Lanka & Japan was held in 12th January 2016 at the Ministry of Foreign Affairs as a framework to consider concrete measures for future enhancement of economic cooperation.
As follow up to the "Joint Declaration on Comprehensive Partnership" signed in 06th October 2015 between Japan & Sri Lanka, during the Hon. Prime Minister's visit to Japan, the second session of Economic Cooperation Policy Dialogue between the Government of Sri Lanka & the Government of Japan was held on 05th February 2016 at MILODA to strengthen the bilateral ties of development cooperation.
Japanese Delegation was headed by H.E. the Ambassador, Embassy of Japan in Sri Lanka and Mr. Hideharu Tanaka , Director, Ministry of Foreign Affairs, Japan and consist of officials from Embassy of Japan and JICA Sri Lanka Office while the Sri Lankan delegation was headed by the Secretary, Ministry of National Policies & Economic Affairs.
Following sectors were discussed at the above Dialogue and proposed to follow up again at the next session which is scheduled to be held at the Ministry of Development Strategies & International Trade in June 2016.
¢ National Development Plan of Sri Lanka
¢ Economic and Financial Situation of Sri Lanka
¢ Recent Developments of Japan ODA Policies
¢ Evaluation of Current Economic Cooperation Projects
¢ Pipeline Development Projects under Next Yen Loan Package
¢ Improvement of Investment Climate
¢ Development of Northern and Eastern Provinces
¢ Power Sector Development
¢ Western Region Megapolis - Urban Transport
¢ Urban Planning - Kandy City Development
¢ Water & Sanitation
China - Sri Lanka Joint Committee on Economic Corporation
The "Joint Committee for Economic and Trade Cooperation" between the Government of Sri Lanka and the Government of People's Republic of China was established as per the bilateral agreement signed on 22nd May 1984.
The objective of the Joint Committee is to further strengthening and developing friendly relations between two countries and promoting the economic & trade cooperation. This has been a productive platform for resolving various issues and obstacles pertaining to economic and trade relations between the two countries.
The 6th JEC meeting was held in June 2014 in China. Accordingly, the Government of Sri Lanka will host the 7th Session of the JEC in Sri Lanka towards mid 2016.
The Working Group on Economic Cooperation functioning under the JEC, met in Colombo on 06th January 2016.
The objective of the working group meetings is to assist in resolving issues pertaining to relevant areas and also to open up new avenues of cooperation. Based on the progress of working group discussions, the JEC meetings will be arranged.
At the Working Group meeting held on 6 January 2016, the following points have been suggested to be taken up for higher level discussions at the JEC level in mid 2016. The SL delegation at the JEC will be lead by Hon. State Minister of National Policies & Economic Affairs.
" Evaluation of current economic cooperation projects and future directions for economic cooperation
" Current status of FTA
" Projects funded by Chinese grant assistance and new proposals for grant assistance
" Mega projects for bi-lateral cooperation including new project pipeline
" Promoting Chinese investments in Sri Lanka including industrial and tourism sector
Country Programme Action Plan 2016 - 2017 funded by United Nations, World Food Programme (WFP)
The United Nations, World Food Programme (WFP) has agreed to extend the food aid assistance through the Country Programme Action Plan 2016 - 2017. The objective of this two year Country Programme Action Plan is to improve food and nutrition security, and build resilience of vulnerable communities to climate shocks. The total cost of the Country Programme Action Plan 2016 - 2017 is US $ 19,705,165.
Accordingly, WFP will extend the support using in-kind and cash-based transfer modalities to approximately 274,000 beneficiaries for school meals, nutrition support to children under-five and pregnant and lactating women, resilience building for disaster affected community in addition to capacity development for policy development.
This programme will be executed by the Ministry of National Policies and Economic Affairs and implemented through the Presidential Secretariat, Ministry of Health, Nutrition and Indigenous Medicine, Ministry of Education, Ministry of Environment, relevant Ministries of the Northern Provincial Council and the respective District Secretariats.
For this purpose, an Action Plan was signed on 27th January 2016 at the Ministry of Finance and Dr. R. H. S Samarathunga, Secretary, Ministry of Finance on behalf of the Government of Sri Lanka, His Excellency, Ismail Omer, Representative, on behalf of the World Food Progarmme.
ADB Provides loan assistance of USD 150 million for the Implementation of Mahaweli Water Security Investment Program (Tranche1)
The Government is planning to transfer Mahawali Water to North western, North Central and Northern Provinces under the Mahaweli Water Security Investment Program with the aim of maximizing the productivity of Mahaweli River Basin water resources. The total investment cost of this program is around Rs 90 billion (USD 675 million) and the Government of Sri Lanka has entered in to two loan agreements to obtain financial assistance for tranche1 of the above program.
ADB has agreed to provide USD 453 million under the Multi - tranche Financing Facility (MFF) of ADB through three tranches for the implementation of this program. The Government contribution for the total program is USD 108 million and the balance USD 114 million will be arranged through co-financing .The total investment cost of tranche 1 is USD 190 million and USD 150 million will be obtained from ADB as loans. The Government will invest balance USD 40 million.
Three major investment projects; Upper Elahera Canal Project, North Western Province Canal Project, Minipe Left Bank Canal Rehabilitation Project will be implemented under the above investment program. The construction of new and improved water conveyance and storage infrastructure under this program will increase the productivity of agricultural lands in the above provinces. 25,000 farmer families under Upper Elahera Canal Project, 40,000 farmer families under North Western Province Canal Project and 15,000 farmer families under Minipe Left Bank Canal Rehabilitation Project will be directly benefited through this program. In addition, provision of safe drinking water for people live in those areas will help to prevent Chronic Kidney Disease. (CKD)
This project will be implemented by the Mahaweli Authority of Sri Lanka and Department of Irrigation under the supervision of the Ministry of Mahaweli Development and Environment
In this connection, Dr. R H S Samarathunga, Secretary to the Ministry of Finance on behalf of the Government of Sri Lanka and Ms. Sri Widowati, Country Director of ADB Sri Lanka Resident Mission on behalf of ADB, signed the two Loan Agreements to obtain USD 150 million on 17th September 2015 at the Ministry of Finance.
Ministry of Finance
Proposed Deduru Oya and Ruwanwella Water Supply Projects in Kurunegala and Kegalle Districts
The Government of Republic of Korea has agreed to provide two concessional loans for USD 78.685 million (Approximately Rs.10,230 million) to improve water supply facilities for the people in Kurunegala and Kegalle districts in line with the Government’s target of providing safe drinking water for all citizensRapid spreading of chronic kidney disease has become a burning issue in Sri Lanka. Mahawa and Polpithigama divisions in Kurunegala District have been identified as the prominent areas of chronic kidney disease due to consumption of unsafe ground water. Also, dug wells in Ruwanwella area in Kegalle District get dry during the dry period and people in this area suffer from shortage of drinking water.
Therefore, provision of safe drinking water to residents in Mahawa, Polpithigama and Ruwanwella areas by developing a piped water supply schemes is vital, and it will help to decrease the incidence of water borne diseases and shortage of drinking water in these areas.
The GOSL had bilateral discussions with the Government of Korea to get financial assistance for the above purposes, and accordingly GOK has agreed to provide two concessional loans amounting USD 58.155 million (Approximately Rs. 7,560 million) and USD 20.530 million (Approximately Rs. 2,670 million) for Deduru Oya and Ruwanwella water supply projects respectively through Economic Development Cooperation Fund of the Export- Import Bank of Korea.
The signing of Loan Agreement pertaining to the above loan took place today, at the Ministry of Finance and Planning. Loan Agreement was signed by Dr. P.B. Jayasundera, Secretary, Ministry of Finance and Planning and Mr. YIM Seong-Hyeog, Vice President of the Export- Import Bank of Korea. The projects will be implemented by the National Water Supply & Drainage Board under the Ministry of Water Supply and Drainage.
Ministry of Finance and Planning
537 Rural Bridges to be constructed under credit facility of USD 162 million
The Deutsche Bank AG (London) & the Bank of Tokyo-Mitsubishi UFG Ltd has agreed to provide a credit facility of USD 162 million to finance construction and rehabilitation of 537 rural bridges with lengths of 6-30 metres covering the entire island.
The construction of these bridges will immensely facilitate in creating opportunities for rural and estate communities residing in remote areas connecting a number of villages. It will enhance the quality of living standards of the people in these areas. Reduction of travel time and distance travelling would bring benefits to these communities
Further it will link rural communities with the main stream of development and ensure equal distribution of the country’s development benefits between urban, rural and estate sector.The Project will be implemented by the Ministry of Economic Development.
The signing of the agreements pertaining to the above loan took place at the Ministry of Finance and Planning. H.E. Mr. John Rankin British High Commissioner to Sri Lanka signed the agreements on behalf of the UK Government while Dr P.B. Jayasundera, Secretary, Ministry of Finance and Planning signed on behalf of the Government of Sri Lanka.
Representatives from Deutsche Bank and the Bank of Tokyo-Mitsubishi UFG Ltd also signed the agreements
Ministry of Finance and Planning
A loan of US$ 20.7 million to import 2,500 cows to NLDB to increase milk production in the country
The Government has given high priority to increase the local milk production to cater local consumption requirements. However, acute shortage of quality dairy animals in the country has hampered the Government efforts to develop the dairy industry thereby reaching self sufficiency in milk. Therefore, Government has already imported 2,000 high yield cows to National Livestock Development Board NLDB farm complex in Bopaththalawa and the infrastructure of the farm complex was developed. With the success of the above project, the Government decided to import a further batch of 2500 cattle, to the Ridiyagama farm in the Hambantota district and a new farm complex will be constructed with all latest technologies to house these cattle.
The Cooperatiieve Centrale Raifffeisen-Boerenleenbank (Rabobank) of Netherlands and the Export Finance Insurance Corporation (EFIC) of Australia have agreed to provide a loan in a sum of US $ 20,747,293.34 for the implementation of this phase of the project.
The signing of the agreement pertaining to the above loan took place at the Ministry of Finance and Planning. Ms. Karin Kobelentz, Director, Structured Trade & Project Finance on behalf of EFIC, Australia and Han Bartelds, Vice President, Structured Trade and Export Finance on behalf of Rabobank, Netherlands signed the agreement while Dr P.B. Jayasundera, Secretary, Ministry of Finance and Planning signed on behalf of the Government of Sri Lanka. Deputy High Commissioner of Australia in Sri Lanka also participated in the ceremony.
Ministry of Finance and Planning
New Bridge Construction Project over the Kelani River
The Development Policy Framework of the government envisages a modern economic infrastructure system covering entire country. The strategic city development programme of the government identified by the Mahinda Chinthana policy framework is now been implemented parallel to the development of road and expressway network of the country to suite a middle income economy. Under the above programme all cities which are strategically important will be developed as planned cities recognizing their uniqueness.
Plans are being already formulated to increase the accessibility to the express way network from the city of Colombo which controls the expected traffic congestion at the existing Kelani Bridge due to transformation of Colombo city to a modern city along with successful completion of express way network. As the traffic volume in Colombo city has increased significantly during last few years, studies are now being undertaken to construct an elevated road network to divert the Colombo traffic to the expressway network in order to minimize the traffic congestion. Meantime, Government plans to build a new bridge across the Kelani river, linking Colombo city and Colombo Katunayake Expressway to mitigate and disperse the increased traffic congestion in the city areas. This will also expect to improve the accessibility to Colombo Port and Expressway Network.
For the purpose, the Government has decided to obtain assistance from the Government of Japan, a major development partner of Sri Lanka who has provided grant assistance since 1989 for construction of bridges as well as other infrastructure facilities in the country. As a result of bilateral discussions had with the Government of Japan, the Government of Japan agreed to provide a concessional loan amounting to Japanese Yen 35,020 million (Approximately Rs. 45,526 million) through Japan International Cooperation Agency to construct the second new Kelani bridge.
The signing of Exchange of Notes pertaining to the above Yen loan package took place today, at the Ministry of Finance and Planning. His Excellency, Mr. Nobuhito Hobo, Ambassador of Japan in Sri Lanka signed the Exchange of Notes on behalf of the Government of Japan while Dr. P B Jayasundera, Secretary, Ministry of Finance and Planning singed on behalf of the Government of Sri Lanka. Loan Agreement was also signed by Dr. P B Jayasundera, Secretary, Ministry of Finance and Planning and Mr. Kiyoshi Amada, Chief Representative of JICA Sri Lanka Office on behalf of the Government of Sri Lanka and JICA respectively.
Ministry of Finance and Planning
28th March 2014
Construction and Rehabilitation of 25 Bridges of the National Road Network
The Development Policy Framework of the Government has identified the necessity of rehabilitation and improvement of national road network of the country on a priority basis to improve the efficiency of transport services. Accordingly, the government has assigned high priority for widening and improvement of the narrow bridges which are very old and have reached their maximum serviceable life. Deterioration caused over time by heavy traffic and an adverse environment conditions have resulted higher frequency of repairs in to old bridges and reduced the carrying capacity. In this context, it is required to construct and rehabilitate narrow bridges of the national road network by increasing its connectivity covering the entire island and expanding opportunities of people's access suitable for current requirement.
The KFAED has agreed to provide USD 36 million for construction and rehabilitation 25 narrow bridges including 9 bridges in Western Province, 3 bridges in Southern Province, 5 bridges in North Western Province, 4 bridges in Sabaragamuwa Province, 3 bridges in Northern Province and a bridge in Eastern Province. Implementing of this project will help to mitigate traffic congestion in high traffic corridors and traffic accidents while improving the connectivity of the road network.
The Kuwait Fund for Arab Economic Development has extended USD 196 Million since 1975 with concessional terms and conditions for the development of Sri Lanka. They have funded for diversified areas such as education, irrigation and the road development sectors. Kalu Ganga Development Project, South Eastern University Development Project, Bridges rehabilitation and reconstruction project and Strengthening of Tertiary Education and Administrative Infrastructure in Tsunami Affected Areas are the significant projects which are currently being implemented with KFAED assistance.
The loan agreement for USD 36 million (Kuwait Dinar 10) for Reconstruction and Rehabilitation of 25 Bridges of the National Road Network was signed today (30.01.2014) at the Ministry of Finance and Planning by Dr. P.B. Jayasundera, Secretary of Ministry of Finance and Planning on behalf of Government of Sri Lanka and Mr. Hesham Al-Waqayan, Deputy Director General of Kuwait Fund for Arab Economic Development. The proposed project will complement the program for construction of 1000 rural bridges island wide.
30th January 2014
Ministry of Finance and Planning
Hungary provides Rs. 6 Billion (Euro 35 mn) for Rehabilitation of Labugama and Kalatuwawa Water Treatment Plants
The water requirement of most of the residents living in the Colombo Municipal Council area and suburbs is served from Ambatale, Labugama and Kalatuwawa water treatment plants. Labugama and Kalatuwawa water treatments plants constructed in 1886 and 1957 respectively supply 13.5 % of the water requirement of Colombo City and suburbs. At present, Labugama and Kalatuwawa water treatment plants produce 45,000m3/day 52,000m3/day of treated water respectively. Rapid growth of population including the daytime population in Colombo has resulted in increase water demand. On the other hand, various problems of raw water quality and deterioration of plants especially in the sand filters have reduced the production capacity of these two plants. It is therefore, required to increase the capacity of existing water treatment plants to cater for the rapid demand. As both Labugama and Kalatuwawa water treatment plants are situated at high elevation, rehabilitation and augmentation of these two plants will enhance the supply of low cost water to Colombo City with a minimum maintenance.
In considering the request made by the Government of Sri Lanka, the Hungarian Export - Import Bank Private Limited Company (Hungarian Exim Bank) has agreed to provide financial assistance of Euro 35 million for the Rehabilitation of Labugama and Kalatuwawa Water Treatment Plants.
Under this project, the water treatment process of the two plants will be transformed to high-tech process which improves the water quality significantly. The production capacity of Labugama and Kalatuwawa plants would also be increased from 45,000m3/day to 60,000m3/day and 52, 000m3/day to 90,000m3/day respectively. Total increase of the production capacity would be 53,000m3/day. The total population of 700,000 in the areas of Colombo Municipal Council and the areas of Kolonnawa, Ja-Ela, Maharagama, Homagama, Pannipitiya, Piliyandala, Mattegoda and Biyagama will be benefitted from this project.
The National Water Supply and Drainage Board will implement the project under the supervision of the Ministry of Water Supply and Drainage and the project is expected to be completed in early 2015.
The signing of two Loan Agreements pertaining to the above project took place today at the Ministry of Finance and Planning. Dr. P.B. Jayasundera, Secretary, Ministry of Finance and Planning signed the Loan Agreements on behalf of the Government of Sri Lanka while Dr. Viktor Nagy, Deputy Chief Executive Officer and Dr. Szilvia Némedi-Varga, Chief Expert signed the agreements on behalf of Hungarian Exim Bank.
Ministry of Finance and Planning
14th February 2013
OPEC Fund for International Development provides USD 40 mn for Road Network Development Project
The development policy framework of the Government has identified necessity of the rehabilitation and improvement of national road network of the country on the priority basis to improve the efficiency of transport services of the country.
OPEC Fund for International Development (OFID) has agreed to provide USD 40 million (Approximately Rs 5,200 mn) for Road Network Development. The proceeds of the loan will be utilized for improvement and rehabilitation of 64 km of seven national roads and reconstruction of a bridge of 120 m length with 4 lanes. Implementation of this project will improve the road connectivity, ensure smooth traffic flow, avoid delays in travel, prevent wasting of time on the road, especially in high traffic corridors and contribute for the economic development of the country.
The cooperation between the OFID and Sri Lanka commenced in 1976 and has so far extended 14 loans for development projects in Sri Lanka amounting to USD 138 mn on concessional terms. Kalu Ganga Development Project and National Highway Sector Development Project are ongoing major development projects co-financed by OFID.
The Loan Agreement of the Road Network Development Project was signed today (08.10.2012) at the Temple Trees by Dr. P.B.Jayasundera, Secretary, Ministry of Finance & Planning on behalf of the Government of Sri Lanka and Mr. Suleiman J. Al-Herbish , Director General, OFID on behalf of the OFID. The rehabilitation and reconstruction works of this project will be completed at the end of 2014.
FINANCIAL ASSISTANCE OF EURO 78 OF MILLION FROM RABOBANK OF NETHERLANDS FOR THE DEVELOPMENT OF HAMBANTOTA AND NUWARA ELIYA DISTRICT GENERAL HOSPITALS
It is the policy of the government to upgrade basic hospitals to the level of district hospitals through the development of healthcare facilities and provision of necessary medical equipments. This will facilitate in improving their existing curative care services and to provide the people living in the area with access to modern and quality care services. Accordingly, priority of the government has given to mobilize financial assistance for the urgent and essential development activities in the health sector.
Hambanthota District General Hospital serves about a population of nearly 675,000 residents within the district, majority of whom are low income farmers. The hospital is very old and therefore priority has given to improve health service facilities of this hospital. It is expected to provide high quality health facilities to general public living in Hambantota and other peripheral areas by construction of nine storied 800 bedded new hospital with 8 operating theatres, medical equipment and other healthcare facilities. The total floor area of the building is 35,000m2 and it is expected to complete the project within a 30 month period.
District General Hospital-Nuwaraeliya which provides specialist care for over a 700,000 people in the district has been constructed over 100 years ago. This hospital serves the estate population in Hatton, Maskeliya, Norton Bridge, Welimada, Walapone, Haguranketha and Pussallawa divisions. The proposed Nuwara Eliya Hospital which will be built close to the existing base hospital will include 600 beds and 7 operating theatres. The total floor area of the hospital complex is 30,000m2 which is designed as a four storied building considering the topography of the site in order to preserve the natural environment of the vicinity. The development of this hospital including supplying and installation of equipment is scheduled to be completed within a 30 months period.
The total cost of the projects for development of Hambantota and NuwaraEliya District General Hospitals are Euro 46,842,156.91 and Euro 39,649,042.75 respectively. In addition, People's Bank has agreed to provide approximately 2.5 million Euro to finance the above development projects. Accordingly, Loan agreements between Rabobank of Netherland and Government of Sri Lanka were signed on 05th April 2012 for the provision of 78 million Euro (approximately 12,870 million rupees) to implement the of the projects of Development of Hambanthota and NuwaraEliya District Hospitals.
Ministry of Finance and Planning
LKR 9,347 millions from Asian Development Bank to Rehabilitate Access Roads to Southern Expressway
The Government, having recognized the requirement to rehabilitate the roads connecting to the Southern Expressway (SE), the first ever expressway in Sri Lanka, paid more attention in arranging necessary funds for this purpose and as a result has been able to obtain financial assistance of Rs. 9,348.61 mn (USD 85.0 mn) from the Asian Development Bank (ADB). The total estimated cost for rehabilitation of these roads is LKR 11,613 mn (USD 105.6 mn). Six access roads to SE are expected to be rehabilitated under the above project.
These rehabilitation works are crucial to improve the connectivity of roads and to realize the full potential benefits from the SE. The Government contribution to the above investment will be LKR 2,265.42 millions (USD 20.6 millions) while the balance will be obtained as a loan from ADB's Ordinary Capital Resources (OCR).
Rehabilitation work of the identified road sections will be carried out under the 2nd phase of the ongoing National Highway Sector Project (NHSP) which was commenced in 2007 with the aim of rehabilitating 270 Kilometers of national highways and improving the transport sector regulatory framework.
Under the 2nd phase of National Highways Sector Project , 62 kms of national highway road sections on Matara - Akuressa (3.40 km), Hikkaduwa - Baddagana (14.34km), Horana - Aguluwatota - Aluthgama (23.48 km), Katukurunda - Naboda (2.72km), Kirulapona - Godagama (5.33 km) and Colombo - Horana (12.7 km) are planned to be rehabilitated. These selected 6 road sections usually experience high traffic volume. Therefore, the rehabilitation of these 6 road section will facilitate easier access to the new expressway while improving the transport efficiency of the national highways network.
The Road Development Authority (RDA) under the supervision of the Ministry of Ports and Highways will perform as the project implementing agency. The project is expected to be completed by 30th June 2016.
A loan agreement was signed in this connection by the secretary, Ministry of Finance & Planning on behalf of the Government and the ADB Country Director on behalf of the Asian Development, today at the Ministry of Finance & Planning.