Sri Lankan government ensures cash flow for key development projects
The government of Sri Lanka has reportedly authorised the introduction of a new procedure to ensure the cash flow for key development projects in a bid to accelerate development activities.
The new measures introduced by the government will see the State issuing Treasury guarantees and facilitation letters issued to the contractors’ banks, which will enable developers to pay contractors on time, the local media reported.
“This will see the contractors paid on time and State payments efficiently managed to complete development projects on time,” Cabinet Co-Spokesperson, Minister Dr. Ramesh Pathirana recently said at a Cabinet press briefing.
The new measures will also allow projects that can be expedited with the approval from the Treasury Secretary and relevant authorities, subject to a report submitted to the Cabinet every three months, reports further noted.
The Cabinet of Ministers has already given a green light to a proposal by Sri Lanka’s Prime Minister Mahinda Rajapaksa in his capacity as the Finance Minister to accelerate development activities after a number of barriers to expedite development projects were identified.
The government of Sri Lanka has taken steps to ensure a smooth cash flow for the country’s development programme. Foreign businesses/investors could confidently explore business/investment opportunities in Sri Lanka. Given Sri Lanka’s geographical positioning in the Indian Ocean, ease of doing business environment and the many trade agreements as well as trade concessions enjoyed by the country have made it a business hub in the South Asian region.
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