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Sri Lanka to issue Rs80bn in Treasury guarantees for road, water loans

ECONOMYNEXT – Sri Lanka will issue Treasury guarantees for up to 80 billion rupees to state banks to fund for roads and water projects, cabinet spokesman Minister Ramesh Pathirana said.

The Treasury will issue credit guarantees of up to 50 billion rupees to state banks to give loans to the Road Development Authority.

The funds will be used to upgrade 100,000 kilometres of roads and also provide funds to start section 1 of Sri Lanka’s Central Expressway and Section II which is already under construction, Minister Pathirana said.

Another 30 billion rupees of Treasury guarantees would be issued to the Water Supply and Drainage Board to fund water supply schemes.

“Providing water is a priority of this government,” Minister Pathirana said.

The road and water agencies are not government departments but separate entities, whose borrowings are not counted in the budget, until funds are provided to settle the loans after the grace period ends. (Colombo/June25/2020)