The Development Policy Framework of the Government has identified the necessity of improvement of accessibility and connectivity of Rural Sri Lanka by rehabilitation and improvement of rural & provincial roads on a priority basis. Poorly maintained provincial and rural road network has resulted poor accessibility and connectivity, poor road safety, as well as high transportation costs for the rural community to access basic services and economic opportunities. In this context, the government of Sri Lanka has assigned high priority for constructing 100,000 kmof rural roads and connecting them to main roads network while improving market links and more opportunities along agricultural value chains to the rural community.
Inclusive Connectivity and Development Project (ICDP) will improve 3000 km of growing proportion of the provincial and rural road network that is in poor condition. This proposed project will complement for the Government’s 100, 000 km rural road development program. In addition, the project will focus on the development of smallholder Agriculture Sector by further expanding market links and more business opportunities. It is planned to bridge the gaps in infrastructure and services in smallholder agriculture sector such as collection centers, warehouses and cold storage facilities and adequate transport facilities. Accordingly, this project will help deliver inputs and connect farmers to domestic and international markets while reducing post-harvest losses. Ultimately, this project will benefit the rural community to enjoy broad range of economic opportunities and also has access to the infrastructure, social services, and government institutions that are an essential part of any development success.
The total estimated cost of the ICDP project is USD 570 million. The International Bank for Reconstruction and Development has agreed to provide USD 500 million. This project will be implemented by the Road Development Authority (RDA) under the supervision of Ministry of Highways
The Government of Sri Lanka has entered into a Loan Agreement with the IBRD of the WB Group on 03rd November 2021 in Colombo, Sri Lanka to obtain a loan of USD 500 million to finance the Inclusive Connectivity and Development Project. Secretary to the Ministry of Finance, Mr. S.R. Attygalle signed the loan agreement on behalf of the Government of Democratic Socialist Republic of Sri Lanka and the Vice President for South Asian Region of WB Mr. Hartwig Schafer signed the loan agreement on behalf of the WB.