ADB in talks with Govt. for two new highways

Wednesday, 18 April 2012 00:15 - - {{hitsCtrl.values.hits}}

The Asian Development Bank (ADB) yesterday renewed its commitment to support Sri Lanka’s post-war socio-economic growth by entering discussions with the Government on several new projects.

“We will continue to work with the Government in creating niche markets for exports as well as supporting infrastructure and further assist lagging regions,” ADB Country Director Rita O’Sullivan told the media yesterday. She added that the ADB will continue investing around $300 million each year till 2016 in development programs. In addition, there will be private public partnerships and projects with the private sector.

The ADB is also having discussions with the Government with regard to the construction of two more highways but the plans were termed as still being at a “fluid” state.

The Colombo-Kandy highway is still in the pipeline with five tracings being done on projected routes.

A highway connecting Colombo and Jaffna that could cost as much as $4.5 billion is also being considered for ADB funding. Several provincial roads will also be constructed according to the country programme.

ADB is also working with the Government to develop capital markets in Sri Lanka and will continue to engage in a plethora of projects, some of which will be based in the North.

The report warns that Sri Lanka will need tighter demand-management policies to forestall the buildup of serious economic imbalances.