Govt. to settle Rs. 87 b for contractors before Sinhala and Tamil New Year

The Government has decided to settle the total Rs. 87 billion due for the transport and highway contractors before the Sinhala and Tamil New year through funds raised via Treasury Bonds.

“Of the Rs. 87 billion, 40% will be settled this month, 30% in March and the remaining 30% will be paid before the Sinhala and Tamil New Year,” Cabinet Co-Spokesman and Minister Bandula Gunawardana said on Tuesday.

Citing the financial constraints for the inability to make relevant payments of the year from the funds allocated to the Transport and Highways Ministry, he said they opted for treasury bonds to raise the necessary funds to settle the payments.

“After many discussions with the Finance Ministry, it was agreed to provide treasury bonds. The settlement of the bond will be made within three years 2024, 2025 and 2026,” he added.

Gunawardena said the Government contractors have provided services by obtaining bank loans and mortgaging their real estate, thus settlement of payments was imperative.

“Some of the contractors have been blacklisted for not settling the dues. Given the high-interest rate regime they are faced with great difficulties due to the bankruptcy of their businesses,” he explained.