The Government of Japan has approved the allocation of Rs. 682m (approx. US$ 7.6 million), under the Japanese Counterpart Grant Aid Fund to the Mahaweli Development Authority for the rehabilitation and construction of a link road between Pallegama Junction in the System E Zone via Bakamuna up to the Kandalama/Dambulla Junction.

Further to the construction of the Habarawewa bridge and the related access road to System E across the Mahaweli River, the road rehabilitation/construction exercise is required to be extended beyond Pallegama up to the Kandalama-Dambulla Junction in order to facilitate the rapid process of economic development enhanced by the Mahaweli Development Projects. The present regular route exists for the movement of agricultural and manufactured goods between System C and the Dambulla commercial centre, via Girandurukotte-Dehiattakandiya, Manampitiya, Polonnaruwa and Habarana covering a total distance of approximately 165 km. Through the implementation of this project the distance will be reduced by approximately 75km resulting in substantial savings in transport, travel time and transaction costs while at the same time increasing the overall profits of the farmer.

This project will enhance the regional economic significance of the Dambulla agricultural market centre and its immediate hinterland region. It will also facilitate further the linkage between the agricultural heartland of the North-Central and Eastern Provinces and the urban manufacturing commercial and population centers of the South-West region of Sri Lanka thereby elevating the living standards of the poverty ridden region within the Dry Zone. The construction of this link road will promote higher mobility of goods, services and people across the Dry Zone agricultural regions.

Thus the hitherto isolated agricultural areas and marginalised agricultural population will be incorporated into the mainstream national economy.

It is the earnest wish of the Japanese Government that this counterpart fund will contribute to the development of the agricultural sector in Sri Lanka especially the farming community in the Dry Zone and the overall development of the nation as well.