The Asian Development Bank (ADB) and the Government of Sri Lanka have signed the US$107 million second tranche loan agreement of an US$800 million multi-tranche financing facility to upgrade roads.
The loan is part of the Integrated Road Investment Program, or so- called “iRoad” in Sri Lanka, is largely earmarked for the first set of projects in the Sabaragamuwa Province; Kalutara District of the Western Province; Central Province; North Central Province; and North Western Province, helping provide 9.3 million people with swifter and safer travel.
“Providing all-weather road access will help link rural communities to socio-economic centres in Sri Lanka, thereby enabling rural communities to reap and enjoy the fruit of economic growth,” said Sri Widowati, ADB’s Country Director in Sri Lanka.
Widowati signed the loan on behalf of ADB while R.H.S. Samarathunga, Secretary to the Treasury, Ministry of Finance, signed for the Government of Sri Lanka.
The programme will improve road connectivity to the rural hubs. With most of the rural access roads currently in poor condition, improvements will result in time savings and a decrease in large vehicle operating costs.
In addition, all-weather rural access roads will result in significant social benefits and poverty reduction, such as increased agriculture productivity since farmers will be able to get goods to market faster, better access to health services and education, and easier access to jobs.