Press briefing of Cabinet Decision taken on 2022-11-28

Implementation of High Impact Community Development Projects with Indian Grant Assistance

- The project to implement High Impact Community Development under Indian grant assistance has been implementing since 2005. Accordingly, for the implementation of the said project, Memoranda of Understanding have been signed between the two countries for the periods from 2005 - 2010, 2010 - 2015 and 2015 - 2020. Under the said project, priority is given for the provision of infrastructure facilities in the education, health and community development sectors. The cost of a sub-project implemented under the project is limited to Rs.300 million, and the value of the total number of projects executed at any time is subject to a price ceiling of Rs.5 billion. However, owing to the current economic crisis and high inflation prevailing in the country, it has been difficult to implement certain projects within the maximum price ceiling of Rs.300 million and therefore, both parties have agreed to increase the said maximum price ceiling up to Rs.600 million and the total cost of the projects implemented at any time up to Rs.10 billion. As such, the proposal made by the Hon. President in his capacity as the Minister of Finance, Economic Stabilization and National Policies, to revise the Memorandum of Understanding signed between the two countries, was approved by the Cabinet.