World Bank country chief Naoko Ishii said the additional financing will support the growth of infrastructure in lagging regions, the return to normalcy of conflict affected people and strengthen service delivery of the government.
Sri Lanka is borrowing 98 million US dollars from the World Bank in extra funds for an ongoing road project, 43 million dollars for housing reconstruction in the North and East and 10 million dollars for education.
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The World Bank said its road project which started in 2006 with a credit of 100 million US dollars has shown quick results and 602 kilometres of roads would be completed by 2011.
The extra funds were needed for cost overruns coming from oil-related materials.
"The approach has been to provide a quick overlay of the selected priority roads without any acquisition of land with substantial improvements to drainage, and with a focus towards continuous maintenance of the national road network," Amali Rakapaksa, a World Bank specialist on infrastructure