SL gets Rs.60bn Japanese concessional loan for rural infrastructure, water supply

The Japanese government through Japan International Cooperation Agency (JICA) will provide a Rs.60 billion concessional loan to Sri Lanka for rural infrastructure development and water supply projects. 
The Sri Lankan government has decided to implement the rural infrastructure development project in emerging regions and Kalu Ganga water supply 
expansion project. 
Accordingly, the Japanese government has agreed to provide a concessional loan of Japanese Yen 12,957 million (Rs.17.4 million) to develop livelihoods through improvement of basic infrastructure, such as rural roads, medium and small size irrigation and rural water supply facilities in Northern, Eastern, North Central and Uva Provinces.Further, the Japanese government has agreed to provide a concessional loan of Japanese Yen 31,810 million (Rs.43 million) to implement first phase of Kalu Ganga water supply expansion project to provide safe water and increase water supply efficiency in the southern area of the Western Province.

Western Province comprised of Colombo, Gampaha and Kalutara districts is the centre of Sri Lanka’s economic and social activities with relatively developed infrastructure facilities. 
However, the coverage of pipe borne water supply in Kalutara District is approximately 37.1 percent and recorded as the lowest in Western Province. 
Moreover, due to recent rapid urbanization, it is estimated that the service population of the current Kalu Ganga water supply system will be increased by 45.8 percent from 2015 to 2025. 
In order to respond to an increasing demand, augmentation of the Kalu Ganga water supply system and non-revenue water reduction remains imperative.
The exchange of notes of the above projects was signed between the two governments during Sri Lankan Prime Minister’s visit to Japan in April this year.