Rural road network to receive upgrade with ADB’s US $ 200mn assistance

• Upgrade to rural road network to connect vast rural populations to jobs and services
• About 3,400 km of rural access roads and 340 km of national roads in Eastern, Northern, Uva, Western provinces to be rehabilitated 

Sri Lanka’s rural road network will receive an upgrade in the coming months, with the government having signed a US $ 200 million loan agreement with the Asian Development Bank (ADB), yesterday.

The new loan agreement, to support the roll out of the Second Integrated Road Investment Programme tranche three, will continue the assistance of ADB to upgrade Sri Lanka’s rural road network connecting vast rural populations to jobs and services.

Alongside the loan agreement, a project agreement was also inked between ADB and the implementing agency, the Road Development Authority.

The project will be implemented, despite the pandemic, while adhering to strict health guidelines and is expected to support the post-pandemic economic recovery in rural areas.

ADB said with the rural road network upgrade, the targeted areas will receive support through job opportunities and by obtaining services from rural populations, such as the hiring of vehicles, buildings, equipment, etc.

“Access to markets and business opportunities, especially along agricultural value chains, can be significantly improved with better transport infrastructure and can serve as the key to poverty reduction and shared prosperity in rural areas,” said ADB Country Director for Sri Lanka Chen Chen in a statement to the media.

He pointed out that economic growth is hindered by poor transport infrastructure, particularly some poorly maintained provincial and local roads.

Reflecting similar sentiments, Treasury Secretary S.R. Attygalle stressed that providing all-weather road access would help link rural communities to socioeconomic centres in Sri Lanka, thereby enabling rural communities to reap and enjoy the fruit of inclusive economic growth.

“This is very much in keeping with the government’s development policy and will contribute to the government’s development plan,” he added.

The freshly signed loan agreement is the third of five tranches under the Second Integrated Road Investment Programme, which was approved by ADB’s board of directors in 2017.

The programme will deliver a total financing of US $ 900 million to rehabilitate and improve about 3,400 kilometres (km) of rural access roads and 340 km of national roads in the Eastern, Northern, Uva and Western provinces.

It will improve the capacity of the country’s road agencies on road safety, maintenance, research, road design and construction. The programme is due for completion in 2027.