Press briefing of Cabinet Decision taken on 2018-03-27

Securing of Additional financing for the Kaluganga Development Project

Construction work of the Kaluganga Reservoir has commenced in the year 2014 and the work is expected to be completed by December 2018. Due to the unforeseen geological conditions identified in the Bund, the necessary revisions of the design done accordingly have led to an increase of the cost of the contract by US$ 50.5 million. Out of the shortfall of funds, the Saudi Fund for Development has agreed to provide an additional loan of approximately US$ 16 million to cover the shortfall. Accordingly, the proposal made by Hon. Ranil Wickremasinghe, the Prime Minister in his capacity as the Minister of National Policies and Economic Affairs, to conduct negotiations to obtain the said loan and to enter into the relevant agreements, was approved by the Cabinet.