Three water projects in Sri Lanka to be financed by India

The Loan is to be provided by the Exim bank of India. The Export- Import Bank of India will lend $403.01 million to Sri Lanka’s National Water Supply Board The Dollar Business Bureau

India has promised to finance $400 million to Sri Lanka’s 3 water projects

Sri Lanka’s water woes are finally seeing some light. India has signed an agreement with Sri Lanka, where it has promised to finance $400 million for three water supply projects in the country, which would benefit somewhere around one million consumers. The loan is to be provided by the Exim bank of India. The Export- Import Bank of India will lend $403.01 million to Sri Lanka’s National Water Supply Board in the presence of Y.K. Sinha, Indian High Commissioner to Colombo and Rauff Hakeem, the Sri Lankan Minister of Water Supply. Exim Bank would provide the National export insurance account in which both the parties have signed the Buyers Credit Agreement, revealed the Indian High Commissioner. The agreement would serve as an effectual entry into the market from the traditional and new markets in developing countries, that are in need of adjourned credit on medium or long term basis, the High Commissioner added. The three projects are the Polgahawela, Pothuhera and Alawwa Integrated Water Supply Project, Aluthgama, Mathugama and Agalawatta Integrated Water Supply Project, and the Kundesale, Haragama Water Supply Projects. India is helping Sri Lanka in a number of ways. It has undertaken the project of building houses to the ethnic Tamils who have been shattered by 30 years of civil war, that ended in 2009. The project amounts to around $270 million. India has been helping the island nation that has been wrecked by separatist war in the northern and southern regions of the country. It is also involved in the restoration of the Northern Railway line in the country's war wrecked zones.

March 10, 2016 | 04:15pm IST

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The Dollar Business Bureau - Mar 10, 2016 10:42 IST

Three water projects in Sri Lanka to be financed by India

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