Nov 14, 2011 (LBO) – Sri Lanka’s first 96 kilometre expressway from the capital Colombo to Galle in the south of the island to be opened in November 27, cost 77 billion rupees to build, officials said. The road is part of a 126-kilometer expressway running to Matara at the Southern tip of the island which has faced delays and cost escalations.
Deputy highways minister Nirmala Kothelawala said an extension running up to Hambantota, the home constituency of President Mahinda Rajapaksa is now being designed.
The first section was financed by Japan and the Asian Development Bank, highways ministry secretary Sujatha Cooray said.
ADB and JICA had given two loans each. ADB had given one 88.6 million dollar loan for in a via 32-year loan with an 8-year grace with 1.0 percent during the grace period and 1.5 later.
A second loan of 90 million US dollar will is repayable in 20 years with 5 years’ grace. The interest rate is Libor is plus 0.6 percent.
JICA has given a US dollar 154 equivalent 40-year yen loan with 10 years’ grace. It has an interest rate of 2.2 percent.
JICA had given a second 163 dollar equivalent 30 year loan with 10 years’ grace at 1.4 percent interest rate.