September 11, Colombo (LNW): The Kingdom of the Netherlands has extended a further grant of €730,000 to support Sri Lanka’s ambitious initiative to improve rural infrastructure through the construction of hundreds of small bridges across the island.
The latest financial contribution reflects a deepening partnership between the two nations and a shared commitment to sustainable rural development.
According to the Ministry of Finance, Planning and Economic Development, the new funding will help address additional financing needs that have arisen during the final stages of the project, ensuring its timely and successful completion.
The Rural Bridges Project—designed to strengthen connectivity and ease transport difficulties in isolated communities—aims to construct 162 small to medium-scale bridges in rural regions, improving access to markets, schools, hospitals, and public services.
As of September 2025, 151 of these structures have already been completed, marking a physical progress rate of 96 per cent. The remainder is expected to be finalised by February 2026.
The project was initially supported through a loan agreement with Coöperatieve Rabobank U.A. of the Netherlands, which provided 75 per cent of the required capital—amounting to €41.8 million. The balance was originally covered by a €13.9 million grant from Invest International, the Netherlands’ development finance institution.
However, recognising Sri Lanka’s ongoing economic challenges, the Dutch government adjusted its support in 2024 by significantly increasing its grant portion—rising to approximately 35% of the project’s overall cost.
This additional assistance, worth around €5.3 million, allowed Sri Lanka to cancel part of the remaining undrawn loan, thereby reducing its external debt exposure.
With the latest disbursement of €730,000, total grant support from the Netherlands now stands at just under €19 million—representing approximately 37 per cent of the entire project budget.
