Cabinet approves signing of loan agreement with ADB for USD 60 mn to repair roads

By Rathindra Kuruwita

The Cabinet of Ministers has approved the signing of a loan agreement with the Asian Development Bank to borrow 60 million US dollars to complete the Integrated Road Investment Program (IRIP), cabinet spokesman Bandula Gunawardena told reporters on Tuesday.

Addressing a press conference, Gunawardena said the IRIP was implemented using loan funds provided by the Asian Development Bank. However, this project was suspended because the government ran out of funds, he said.

Following recent discussions held by the Ministry of Finance, Economic Stabilization and National Policies with ADB, the latter has agreed to provide a loan of 60 million U.S. dollars for the completion of some of the components of the program that need to be completed urgently. Some roads are in a state of disrepair and need urgent attention, he said. Many foreign funded road projects had to be suspended due to the sovereign default, he said. Sri Lanka is hoping to sign the agreement in December and quickly draw down the funds, he said.