Lanka: ADB doubles funds for highway project

Colombo: The Asian Development Bank (ADB) is doubling its funding commitment by an additional US$ 90 million 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 US$ 90 million 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 two.

The project involves the development of approximately 128 kilometers of highway linking Colombo with Matara and Galle, the ADB said.

The ADB said it will provide a US$ 300,000 grant to prepare a long-term land use and development plan along the highway.

Other financiers of the highway project are the Government of Sri Lanka, Japan Bank for International Cooperation (JBIC), the Nordic Development Fund and the Swedish International Development Cooperation Agency.