Cabinet extends loan and grant period for Health System Enhancement Project

The Cabinet of Ministers on Monday approved an extension for the validity period of the loan and grant obtained from the Asian Development Bank (ADB) for the Health System Enhancement Project.

The extension will ensure that the allocated funds are fully utilised with the revised deadline for utilising the initial financing now set for 30 November 2025. The new date for settling the loan amount is scheduled for 31 May 2026.

The Health System Enhancement Project was executed in two stages with ADB allocations to improve the efficiency, equity, and responsiveness of the primary health services system. The project specifically targets the Central, North Central, Uva, and Sabaragamuwa Provinces, aiming to enhance healthcare delivery across these regions.

The initial financing for the project consists of a loan of $ 37.5 million and an additional $ 12.5 million. Apart from that, additional funding has been secured in the form of a $ 110 million loan and a $ 3 million grant, further expanding the scope of the project.

“This extension will provide the necessary time to complete the project’s objectives and improve the overall quality and accessibility of primary healthcare services in the target provinces,” Cabinet Spokesman and Health Minister Dr. Nalinda Jayatissa said at the weekly post-Cabinet meeting media briefing yesterday.