Cabraal: LRT project shelved as it’s not a priority for Govt.

• Says Govt. has had to rethink several projects initiated by last Govt., including LRT
• $ 22.7 m disbursed as consultancy fees will be paid back with interest
• Priority will be projects that bring relief to low-and-middle-income families
• Decision to scrap Japanese-funded projects has had no adverse impact on relations between two countries

By Chandani Kirinde

 The decision to scrap the Colombo Light Rail Transit (LRT) was taken as it is not a priority project for the Government, State Minister of Money, Capital Markets and State Enterprise Reforms Ajith Nivard Cabraal told Parliament yesterday.

“Priorities of our Government are different to the previous Government. The new Government has had to rethink some of these projects, and this is what we have done with careful consideration,” Cabraal said in response to a question raised by Opposition Leader Sajith Premadasa on why the LRT project and several others initiated by the last Government have been shelved.

Cabraal said the focus of the Government is not just on Colombo-centric projects, but those that provide relief to low-and-middle-income families, especially in rural areas of the country. 

“We give priority to projects such as the elephant-human conflict resolution, development of 100,000 kms of rural roads etc. We also have to start projects in which local entrepreneurs can be involved,” he said.

Cabraal said heavy foreign borrowings by the last Government has almost pushed the country into a debt trap and by shelving this and other similar projects, the Government has managed to avoid a worse situation.

He said the LRT project, which was to cost $ 2,300 million, was to be funded with a loan from the Japanese International Cooperation Agency (JICA). 

“$ 22.7 million had been disbursed as part of the first instalment as consultancy fees. We have to pay that back with interest now,” he said.

He said the decision to scrap the Japanese-funded project has not had an adverse impact on relations between the two countries. 

“I have personally spoken to the Japanese Ambassador and explained the reason for our decision. Japan will continue to partner development projects and are partners in the $ 600 million Katunayake Airport improvement project,” he said.

Cabraal said the Government will take loans when necessary, but the projects will have to reflect the priorities in the President’s s election manifesto ‘Vistas of Prosperity and Splendour’. He said the LRT project might commence in later years depending on Government priorities in the years ahead.