The Asian Development Bank (ADB) says it is
doubling its funding commitment by an additional 90 mln usd for
a major highway project in southern Sri Lanka that will promote
economic growth.
The Southern Transport Development Project was
initially approved in 1999, with ADB extending a 90 mln US
dollar loan. The ADB will now provide a second US $ 90 million
loan to ensure completion of the highway and to expand its
design to four lanes from the existing two.
The project involves the development of
approximately 128 kilometres of highway linking the national
capital of Colombo with Matara and Galle, important district
capital
The ADB also says it will provide a US $ 300,000
grant to prepare a long-term land use and development plan along
the highway with particular focus on the 1.5 kilometres on each
side.
Other financiers of the highway project are the government of
Sri Lanka, Japan Bank for International Cooperation, the Nordic
Development Fund and the Swedish International Development
Cooperation Agency.
