Sri Lanka sign USD107mn deal for road development with ADB

May 29, 2015 (LBO) – Sri Lanka’s government signed a US 107 million dollar road development loan agreement with the Asian Development Bank (ADB), the bank said in a statement.

“The US 107 million dollar second tranche loan agreement is part of a US 800 million dollar multi-tranche financing facility to upgrade roads,” the statement said.

“Providing all-weather road access will help link rural communities to socio-economic centers in Sri Lanka and thereby enable rural communities to enjoy the fruit of economic growth,” Sri Widowati, ADB’s Country Director was quoted as saying in the statement.

Widowati signed the loan on behalf of ADB while R.H.S. Samarathunga, Secretary to the Treasury, Ministry of Finance, signed for the Government of Sri Lanka.

The US 107 million dollar second tranche of the Integrated Road Investment Program, or socalled “iRoad” in Sri Lanka is largely earmarked for the first slice of projects in the Sabaragamuwa, Western, Central, North Central and North Western Province.

The program will improve road connectivity to the rural hubs.

“With most of the rural access roads currently in poor condition, improvements will result in time savings and a decrease in large vehicle operating costs,” the statement said.

“In addition, all-weather rural access roads will result in significant social benefits and poverty reduction, such as increased agriculture productivity since farmers will be able to get goods to market faster, better access to health services and education, and easier access to jobs.”