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Sri Lanka gets funding for Kaluganga river irrigation project from Saudi Fund for Development

Sri Lanka gets funding for Kaluganga river irrigation project from Saudi Fund for Development

The Saudi Fund for Development (SFD) has reportedly agreed to provide a concessional loan of 168.75 million rial (US$ 45 million) for Sri Lanka’s Kaluganga river irrigation project to divert water to the dry zone.
The Finance Ministry has said in a statement that the Kaluganga Left Bank Development Project will result in the construction of the Kaluganga Reservoir, which would increase the capacity of Janaranjana Wewa and irrigate minor and medium tanks.
Accordingly, the project by the Ministry of Irrigation and Water Resources Management will also see the development of an irrigation canal system to provide water to Kinniya and Kanthale Divisional Secretariat Divisions in the eastern Trincomalee District and Madirigiriya in Polonnaruwa District.
The Ministry of Finance has stated that the government of Sri Lanka in its long term development strategy recognizes irrigation and water resources management as a national priority.
The Saudi Fund for Development has also agreed to provide a concessional loan of 105 million rial (US$28 million) for the Wayamba University Township Development Project under the government policy of increasing spending on education.
The project, to be implemented by the Ministry of Higher Education and Highways, is designed to develop academic facilities and infrastructure of the university as well as improve the livelihoods of people living near the university.

OSL take:

The soft loan facility extended by the Saudi Fund for Development is yet another indication of the preparedness of foreign lending agencies to assist in Sri Lanka’s development agenda. It is a positive sign for foreign investors looking at funding options to invest in Sri Lanka. Also, the development of irrigation systems in the country would open up new opportunities in the country’s agriculture sector as well. The township development programme is another area for businessmen to venture into.

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Article Code : VBS/AT/27102017/Z_1

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