Development Projects Set to Kick Off in February Following Debt Restructuring

January 20, Colombo (LNW): Dr. Bandula Gunawardena, the Minister of Transport, Highways, and Mass Media, announced that development projects are scheduled to commence in February after the finalization of agreements related to debt restructuring and ongoing discussions with foreign creditors in Sri Lanka. During a media briefing at the Presidential Media Centre, Minister Gunawardena highlighted that Rs. 150 million has been allocated to the District Development Committees for road development, and an additional Rs. 50 million through the Ministry of Rural Affairs for the development of small roads.

The minister underscored the importance of careful consideration of income and expenditure in the challenging year ahead. In 2022, the government’s total tax revenue amounted to Rs. 1,751 billion, with significant allocations to government employee salaries, pensions, and support for the less privileged. Minister Gunawardena acknowledged the challenge of balancing expenses, including interest payments on loans and capital expenditure.

He reported earnings from various government departments and outlined the financial landscape for 2023, where expenses outpaced revenue, resulting in a deficit. Looking ahead to 2024, Minister Gunawardena revealed that development schemes are slated to begin in February after the restructuring of debt and finalizing agreements with creditors. Notably, a USD 60 million loan from the World Bank and financial assistance from the Samurdi Fund will be utilized for road repairs.

Despite financial challenges, significant allocations have been made for District Development Committees, with Rs. 150 million for road development and an additional Rs. 50 million for small road development. The restructuring of foreign debt has reached its final stages, paving the way for the resumption of paused development projects in Sri Lanka.

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