US$ 33 million Chinese loan to provide electricity for 268 eastern villages

By Uditha Jayasinghe

China is giving the Sri Lanka government a loan of 33 million US dollars to provide electricity to 268 villages in the country’s former war zone, a top minister said here on Thursday.

Cabinet has approved the acceptance of the 33 million US dollar loan from the Chinese government backed Exim Bank, Cabinet Spokesman Minister Keheliya Rambukwella told media.

He added that the money would be used to provide electricity to 268 villages in the Trincomalee and Batticaloa districts in the eastern province that was caught in Sri Lanka’s bloody three decade conflict which ended in 2009.

“The project is expected to serve the increasing needs of the people and enhance economic potential in the area by increasing productivity, creating new employment opportunities and improving the living standards of the community,” the Minister said.

Sri Lankan government is aggressively promoting development and aims to provide electricity to all households countrywide by 2012.

China is also funding a 300 million US dollar coal power plant in Sri Lanka in a bid to increase electricity capacity in the country.

This is the first coal power plant in the island nation. India has also pledged to construct another coal power plant in Sampur.