Sri Lanka to get $350mn ADB aid next year

Dec 21, 2009 (LBO) – Sri Lanka is to get about 350 million US dollars of aid from the Asian Development Bank next year, much of it going for the north and east which was ravaged by war, a senior official said. The ADB forecasts Sri Lanka’s economy will grow by about 4-4.5 percent this year.

“And the prospect is there for a return to the six percent-plus rate of normal growth seen in recent years,” he said.

Vokes said the ADB had disbursed 250 million dollars in aid to Sri Lanka in 2008 and expects disbursements in 2009 to be around 245 million dollars, with the amounts changing according to the progress of projects underway.

Disbursements under the Colombo port expansion project, where the ADB has given a loan of 300 million to build a new breakwater and for dredging, is expected to peak in 2010.

The biggest project in the pipeline for next year would be one to rebuild road networks in the northern province, much of which have been shattered or neglected because of war.

Narhari Rao, Lead Economist of the ADB mission, said the ADB will lend about 130 million dollars for the project

Another 90 million dollars has been allocated for a water supply and sanitation project in the nor