Sri Lanka allocates funds to settle RDA’s outstanding payments

July 30, 2015 (LBO) – Sri Lanka’s cabinet has given approval to allocate funds to settle the outstanding payments of 24 road projects which were stopped due to the funds being used for other activities outside the scope of loan.

The Road Development Authority has been implementing a programme for the rehabilitation and improvement of 28 national highways in various parts of the island through domestic contractors with the loans obtained from the National Savings Bank amounting to a total of 54.70 billion rupees.

However 28 billion rupees of this loan has been used for activities outside its scope, Cabinet Spokesman Rajitha Senaratne said.

The RDA has commenced an internal inquiry on this and has informed the Financial Crimes Investigation Division to conduct investigations into this matter.

As the renovations under these projects have been stopped due to the above matter, the joint proposal made by Ravi Karunanayake, the Minister of Finance and Kabir Hashim, the Minister of Highways and Investment Promotion, to obtain the required funds for the payment of outstanding bills and to resume works of these projects, was approved by the Cabinet of Ministers.