Sri Lanka signs Yen44bn loan deal with Japan for regional roads, water

ECONOMYNEXT – Sri Lanka has signed a 44.76 billion yen (60.4 billion rupee) loan package with Japan for regional infrastructure development and water supply, the finance ministry said.

Japan will provide a concessional loan of 12.957 billion yen (17.431 billion rupees) to build rural roads, medium and small size irrigation and rural water supply projects in the Northern, Eastern, North Central and Uva provinces.

The projects will help develop rural economies and reduce regional disparities, the finance ministry said.

Japan is also providing a 31.81 billion yen (42.97 billion rupee) loan to expand piped water to fast growing Kaluthara district in the Western province.

The project will increase piped water to 45.8 percent of households in the area from the current37.1 percent, by boosting supplies from the Kalu Ganga river water supply system.

The loans under the 47th yen loan package is based on an exchange of notes between Prime Ministers’ of the two countries on April 2017.

The loan agreement was signed with Treasury secretary R H S Samaratunga and Fusato Tanaka, Chief Representative of the Japan International Co-operation Agency in Colombo. (Colombo/July10/2017)

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