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Monday September 25th, 2023

ADB gives US$453mn for Sri Lanka’s Mahaweli water security investment

ECONOMYNEXT – The Asian Development Bank (ADB) is giving Sri Lanka a loan of US$453 million to fund the second phase of a project providing irrigation and drinking water from the island’s main Mahaweli river.

The funds will be used to build storage reservoirs, canals and tunnels to divert river water for thousands of farmer families and provide safe drinking water for people living in areas affected by Chronic Kidney Disease (CKD).

The Mahaweli Water Security Investment Program is one of the major ongoing investment program currently being implemented under the loan assistance of the ADB, the finance ministry’s Department of External Resources said in a statement.

The total investment cost of this program is $675 million of which $453 million will be provided by ADB under Multi – tranche Financing Facility (MFF).

The government of Sri Lanka has already signed two loan agreements with ADB to obtain $150 million to finance the first tranche of the programme.

Three major investment projects; Upper Elahera Canal Project, North Western Province Canal Project, Minipe Left Bank Canal Rehabilitation Project will be implemented under the investment program.

“The construction of new and improved water conveyance and storage infrastructure under this program will increase the productivity of agricultural lands in the North Western, North Central and Central Provinces,” the statement said.

The project involves constructions of 158 km canals and 38 km of tunnels and two new reservoirs with storage capacity of 36 MCM (Million Cubic Meters) as well as rehabilitation of the 74 km Minipe Left Bank Canal.

The statement said 25,000 farmer families under Upper Elahera Canal Project, 40,000 farmer families under North Western Province Canal Project and 15,000 farmer families under Minipe Left Bank Canal Rehabilitation Project will directly benefit from the program.

The proposed second tranche will fund partial construction of 28 km of tunnels on the 62 km conveyance canal linking the Moragahakanda and Hurluwewa reservoirs and partial construction of 8.8 km of tunnels and conveyance canal linking the Kalu Ganga and Moragahakanda reservoirs.

It will also fund continuing construction of the Mahakithula and Mahakirula Reservoirs, and Mahakithula Inlet Tunnel which had been initiated under Tranche 1 of this program.

The total investment cost of tranche 2 is $242 million with the government giving $32 million and ADB $210 million as two loans.
(COLOMBO, May 18, 2018)
 

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Sri Lanka sells 2028 bonds at 14.52-pct

ECONOMYNEXT – Sri Lanka sold all offered bonds in 2026 and 2028 maturities raising 220 billion rupees from an auction Monday, data from the state debt office showed.

The debt office sold 135 billion rupees of 1 June 2026 bonds to yield 15.64 percent.

Another 85 billion rupees in 01 July 2028 bonds were sold to yield 14.52 percent.

The 2028 bond is offered on tap at the weighted average yield. (Colombo/Sept25/2023)

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Sri Lanka’s stocks end down on Monday after slow day of trading

ECONOMYNEXT – Sri Lanka shares were down at close of trading on Monday.

Turnover was 550 million rupees.

The main All Share Price Index was down 0.36 percent or 40.02 points to 11,216.50, while the S&P SL20 was down 0.44 percent or 14.07 points to 3,164.52.

Trading in the Capital Goods Industry (174,037,134) drove turnover.

Commercial Bank, Expolanka Holdings, and Aitken Spence plc saw losses, while National Development Bank, John Keells Holdings and Melstacorp saw gains in the day’s trading.

The market saw a net foreign inflow of 13 million rupees, while the yearly net foreign inflow was 429 million rupees. (Colombo/Sep25/2023)

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Sri Lanka rupee closes at 324.75/324.90 to the US dollar

ECONOMYNEXT – Sri Lanka’s rupee closed at 324.75/90 to the US dollar on Monday, from Friday’s close at 324.70/325.00 dealers said.

Bond yields were up.

A bond maturing on 01.07.2025 closed up at 15.55/15.70 percent on Monday, after closing at 14.95/15.30 percent on Friday.

A bond maturing on 01.08.2026 closed up at 15.50/15.65 percent up from 14.95/15.10 percent.

A bond maturing on 15.09.2027 closed up at 14.75/15.50 percent from 14.55/15.00 percent.

A bond maturing on 01.05.2028 closed up at 14.25/14.60 from 14.00/14.30 percent.

A bond maturing on 15.05.2030 closed stable at 13.00/13.50.

A bond maturing on 01.07.2032 closed at 12.95/13.45 percent from 13.00/13.45 percent. (Colombo/Sept25/2023)

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