USD 200 Million Financial Assistance from the Asian Development Bank for the Second I-road Program

Bridging the urban and rural gap by providing services and infrastructure facilities equally across all segments of the country is one of the key focus of the Government Policy Framework. Developing transport  network  to  ensure  an  efficient  and  environmentally  friendly  public  transport  system  will support achieving this envisaged target of the Government.

Accordingly, the Government of Sri Lanka hasentered into a Framework Financing Agreement on 14thAugust,  2017  with  the  Asian  Development  Bank  (ADB)  to  obtain  a  time  slice  multi-tranche financing  facility  up  to  an  aggregate  loan  amount  of  USD  900  million  to  finance  the  Second Integrated Road Investment Program (Second I Road Program) which is being implemented under the Ministry of Highways.

The  investment  program  is  currently  being  implemented  to  improve  the  accessibility  of  the  road network in rural areas, and thereby support rural economic and social development. Upgrading and maintaining  ofabout 3,400 kilometers (km) of  rural  access  roads  in  Eastern,  Northern,  Uva, and Western  provinces  to  all-weather  standard is  being  carried  out under  the  Program.  In  addition, around  340  km  of  national  roads  between  the  selected  rural  communities  and  social  economic centers  of  the  above  provinces  will  be  rehabilitated  and  maintained  in  good  condition  and  also improve  the  capacity  of  road  agencies  with  respect  to  safeguards,  road  safety,  maintenance, research  capacity,  and  road  design  and  construction.  The  overallprogram  is  scheduled  to  be completed  by  31stMarch,2027.The  Government  of  Sri  Lanka  has  obtained  first  two  tranches amounting to USD 300 million out of the above USD 900 million to finance the ongoing contracts under the Program.

The Loan Agreement forthe third Tranche of the Second I-road Program, amounting to USD 200 million was signed by Mr. S R Attygalle, Secretary, Ministry of Financeand Mr. Chen Chen, Country Director, ADB Resident Mission in Sri Lanka on 28thMay,2021 on behalfof the Government of Sri LankaandADBrespectively.

Press Release (English)

Press Release (Sinhala)