Cabinet clears Rs. 600 m upgrade of Badulla-Hali Ela road using surplus foreign loan funds

Wednesday, 17 June 2026 07:01 -     - {{hitsCtrl.values.hits}}

The Cabinet of Ministers on Monday approved utilising surplus foreign loan funds to rehabilitate and improve a key section of the Badulla-Hali Ela road, including the reconstruction of a stretch severely damaged by Cyclone Ditwah.

The project will cover a six-kilometre section of the Badulla-Hali Ela road from km 115 to km 121 on the Peradeniya-Badulla-Chenkaladi (A05) highway at an estimated cost of Rs. 600 million.

According to the Government, the road section has been in use for over 15 years and requires significant rehabilitation to improve safety, durability and travel conditions.

As part of the initiative, authorities will also reconstruct a 1.5-kilometre stretch between km 119+620 and km 121+200 that sustained extensive damage due to Cyclone Ditwah.

“The funding will be sourced from surplus loan proceeds generated under an ongoing road development project,” Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said at the weekly post-Cabinet media briefing yesterday.

A loan surplus of around $ 2.4 million is expected from the Ampara-Uhana-Mahaoya Road improvement project, which is being implemented with financing from the Saudi Fund for Development (SFD).

The Badulla-Chenkaladi Road improvement program is jointly financed by the SFD and the OPEC Fund for International Development (OFID), with the Cabinet approving the reallocation of the excess funds to undertake the additional rehabilitation work.

The proposal to this effect was submitted by Transport and Highways Minister Bimal Rathnayake.

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