Press briefing of Cabinet Decision taken on 2016-11-08

Provision of Additional Funds for the Kaluganga Development Project

- The construction work carried out in the Moragahakanda Reservoir under the Kaluganga Development Project, is expected to release 100 Cu.M. of irrigable water into the Moragahakanda Reservoir, annually and the development of a new irrigational area of 3,000 Ha, is due to be completed by the end of the year 2018. Due to the unforeseen geological conditions and the changes in the subject area, the cost of the contract has been revised, accordingly. As such, the proposal made by Hon. Ranil Wickremasinghe, the Prime Minister, in his capacity as the Minister of National Policies and Economic Affairs, to enter into negotiations and a Loan Agreement with the Opec Fund for International Development (OFID), for the provision of a part of the additional funds so required, was approved by the Cabinet.