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FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ » Sri Lanka to build 24km road with bank credit

Sri Lanka to build 24km road with bank credit

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Malika1990

Malika1990
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
July 20, 2012 (LBO) - A 24 kilometre road in Sri Lanka's from Maha Oya to Aralaganwila will be built under a scheme where a 500 million dollar bank credit will be used by the state road agency fund domestic contractors.

Sierra Construction (Pvt) Ltd has got the contract to build the road for 2,363 million rupee contract to build the road with financing from state-run Bank of Ceylon, the state information office said.
Sri Lanka's Road Development Authority gets the finance under a Treasury guarantee. Sri Lanka plans to re-build 692 kilometers of roads through domestic contractors under the scheme.

Bank of Ceylon gives the loans to be repaid over 3 years with bi-annual payments with an additional 18 months of grade. The rate is set at the average weighted deposit rate plus 2.5 percent.

Sri Lanka has been pouring large volumes of money to upgrade the country's infrastructure including in former warzones in the North and the East in recent years.
http://www.lbo.lk/fullstory.php?nid=1884515059

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