The International Development Association (IDA) of the World Bank granted a US$ 66.3 million soft loan to implement the Dam Safety and Water Resources Planning Project.

Treasury Secretary Dr P. B. Jayasundera signed the loan agreement on behalf of the government and Country Director Ms Naoko Ishii signed on behalf of the World Bank.

Dr Jayasundera said that the Department of Irrigation and Mahaweli Authority will manage the project which will rehabilitate 32 large dams that had been identified as high risk to public safety. A total of 80 dams are to be provided with basic safety facilities under this project.

He said that 80 percent of the loan was interest free, much like a grant. When questioned about the interest rate he said that the discounted interest rate will amount to nothing significant and could only say that the loan repayment period is a long period of time, "We will still be paying back the loan when you reach my age," he told a young journalist.

He said he hoped the Department of Irrigation and Mahaweli Authority will be committed to the project for the benefit of the people, as both will receive a large infusion of foreign currency to see the project through.