Press briefing of Cabinet Decision taken on 2011-03-30

A Credit of Special Drawing Rights 63,600,000 from the International Development Association of the World Bank for the Road Sector Assistance Project ? Second Additional Financing

? The Government has concluded negotiations with the International Development Association (IDA) of the World Bank to obtain additional financing of Special Drawing Rights (SDR) 63,600,000 (approximately US$ 100 million) for the Road Sector Assistance Project. The main objective of the project is to reduce transportation cost and to improve the connectivity to the Northern and Eastern Provinces by re-surfacing and rehabilitation of 134 Km. of the Road Sections from Ambepussa to Dambulla (91 Km.) and Kantale to Trincomalee (43 Km.) of the A6 Road. The total cost of the project is US$ 110 million, of which US$ 100 million will be provided by the IDA and the balance of US$ 10 million by the Government of Sri Lanka. This credit facility is interest free. The proposal made by H.E. the President to enter into a Financing Agreement with the IDA of the World Bank was approved by the Cabinet.