Govt. to raise Rs. 80 b for RDA and NWSB projects from State banks

Friday, 26 June 2020 00:50 - - {{hitsCtrl.values.hits}}

Cabinet has approved raising Rs.80 billion from State banks to meet outstanding payments of projects carried out by the Road Development Authority (RDA) and the National Water Supply and Drainage Board (NWSDB).

According to the Cabinet paper presented by Prime Minister Mahinda Rajapaksa, the RDA requires Rs. 50 billion to make payments to projects already underway, including commencing work on Phase 1 of the Central Expressway Project and 100,000 km of road development. The second phase of the Central Expressway is also ongoing.

Rs. 30 billion is needed to settle essential financial obligations relevant to the water supply projects implemented by the National Water Supply and Drainage Board. Accordingly, the proposal presented by the Minister of Finance, Economy and Policy Planning to authorize the relevant authorities of the respective institutions to obtain funds from the local banks including Bank of Ceylon, People’s Bank and National Savings Bank and to issue the necessary Treasury guarantees for the purpose was approved by the Cabinet of Ministers.