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Lanka signs USD 100M loan and USD 3M grant agreements with ADB
The Government of Sri Lanka held discussions with the Asian Development Bank (ADB) to mobilise a policy-based loan, amounting to USD 100 million, to implement the Power Sector Reforms and Financial Sustainability Programme (Subprogram 2).
This policy-based lending programme will support the establishment of independent and financially sustainable electricity utilities. It will also support the streamlined and accelerated development of renewable energy sources for electricity generation under the reform areas, according to the Ministry of Finance, Planning and Economic Development.
The Ministry of Energy, in collaboration with the Ceylon Electricity Board, the Sri Lanka Sustainable Energy Authority, Lanka Electricity Company Pvt. Ltd., and the Public Utilities Commission of Sri Lanka, has successfully achieved all pre-policy actions related to Subprogram 2.
Accordingly, the relevant loan proceeds of USD 100 million will be disbursed to the Treasury, once the loan agreement is declared effective. Further, the Government held discussions with ADB to secure a USD 3 million grant for the Cyclone Ditwah Emergency Response Project, as Sri Lanka has been experiencing a severe disaster situation caused by Cyclone Ditwah, resulting in widespread floods, landslides, and other cyclone-related impacts across the country.
The USD 3 million grant assistance comes under the Asia Pacific Disaster Response Fund of ADB and will be obtained for post-disaster relief and rehabilitation work due to the impacts of Cyclone Ditwah.
Accordingly, this grant-funded project will support the provision of essential life-preserving services for communities affected by the cyclone, the statement said.
Grant proceeds will be used for activities, including, but not limited to, emergency rescue equipment, medical supplies and kits, food supplies, water and sanitation systems, transitional shelter materials, hygiene kits, debris-clearance equipment, aviation fuel, and communication equipment.
Accordingly, the above-mentioned loan and grant agreements were signed at the Treasury, in Colombo, by Dr. Harshana Suriyapperuma, Secretary, Ministry of Finance, Planning and Economic Development, on behalf of the Government of Sri Lanka, and Mrs. Cholpon Mambetova, Country Operations Head, ADB Sri Lanka Resident Mission, on behalf of the Asian Development Bank yesterday (05).
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A mechanism that goes beyond the normal state apparatus is needed to restore public life – President
President Anura Kumara Dissanayake emphasised that a unified operational mechanism, which goes beyond the normal state administration, is required to restore public life after a disaster.
The President stated this while participating in the Kandy District Coordinating Committee meeting held at the Kandy District Secretariat on Saturday (06).morning
During the meeting, the President separately reviewed the progress of the programmes underway to restore essential infrastructure in the district, including the roadways, electricity, water and fuel supply, irrigation systems and communication facilities.
The President instructed officials to utilise the allocated provisions for the next 25 days to complete road clearing activities swiftly, until the permanent reconstruction of roads is completed.
The President also instructed that water supply in the district be fully restored within three days. Until then, the water requirements of the public should be met through bowsers and such activities must be carried out as an emergency measure beyond the usual procedure, with technical support from the Tri-Forces.
Further, he instructed that the cleaning of household wells be carried out under the coordination of Divisional Secretariats and that electricity supply in the district be restored by 31 December through temporary repairs, while major reconstruction work will be carried into the second phase.
The President pointed out the need to identify arable lands and give priority to cultivation. He instructed that cultivable paddy fields be identified urgently and supplied with the required irrigation water and highlighted the importance of coordinated action by the Department of Irrigation, Provincial Irrigation Department and the Department of Agrarian Development.
He also instructed officials to expedite the payment of the Rs. 200,000 compensation allocated to identified farmers and fields and to submit a report on the extent of vegetable cultivation affected in the district within two weeks. Accordingly, Rs. 150,000 per hectare will be paid as compensation to the affected vegetable farmers and necessary amendments will be made to provide the same compensation for losses incurred in banana cultivation.
The impact on the livestock sector due to the disaster was also broadly discussed. The President highlighted the need to maintain updated data regarding the number of farms and livestock.
He explained the need to restart damaged livestock farms swiftly, to restore income sources for the farmers and to meet the country’s food needs, including milk, poultry and eggs.
Discussions were also held regarding restoring fuel supply in the district. Due to road blockage, fuel supply has been disrupted in Pussellawa and Meetalawa. The President instructed that, through coordination between the Road Development Authority, the Tri-Forces and the Police, fuel be supplied to these areas by Saturday [06] evening.
The resumption of schools in the Kandy District was also discussed. The President instructed officials to minimise delays in reopening schools to ensure that examinations are held as scheduled.
The President also examined in detail the steps taken to restore the district’s health services, railways and communication facilities.
Discussions were held regarding housing damage and the resettlement of affected people. The roles of the Geological Survey and Mines Bureau and the required staffing needs were considered.
The President stated that state-owned lands in adjacent areas will be identified and presented for resettlement activities and necessary interventions will be made to release such lands through discussions with relevant institutions. He emphasised that the government’s objective is to resettle people safely and continuous assessment must be carried out to ensure that compensation provided for destroyed and partly damaged houses is used properly for reconstruction.
As all compensation payments will be made under the 2025 Budget, the President stressed the need to complete all payments before 31 December, to avoid a burden on the 2026 Budget. He said the dedication of all state officials is essential to successfully implement the programmes initiated to restore public life.
Attention was drawn to the garbage disposal problem in Gampola. As a long-term solution, the President instructed that, until the relevant Mahaweli land is released, land belonging to the Ceylon Electricity Board be temporarily allocated for the purpose.
Attention was also paid to the damage caused to state institutions due to the disaster situation.
While noting that natural disasters such as floods, storms and landslides cannot be prevented, the President emphasised that the loss of lives and property can be minimised. He stated that a proper study of the Central Highlands is needed and a long-term plan must be prepared to restore the eroding ecological system.
He further highlighted the need to enforce the powers of local authorities to prevent similar disasters in the future, stating that no room should be given for illegal constructions hereafter. He also noted that Ceylon Electricity Board should not provide electricity to such unauthorised locations.
The President stated that although some expected it would take a long time for the country to recover after the disaster, the government has already been able to restore public life to normalcy within a very short period. He added that by working together for a little longer, the desired goals can be achieved.
The President expressed special appreciation for the dedication shown by state officials and the Tri-Forces in carrying out these tasks.
Minister of Agriculture, Livestock, Land and Irrigation K.D. Lal Kantha, Deputy Minister of Transport and Highways Prasanna Gunasena, Deputy Minister of Health Hansaka Wijemuni, Members of Parliament Jagath Manuwarana and Thanura Dissanayake, as well as Central Province Governor Professor Sarath Abeykoon, Chief Secretary G.H.M.A. Premasinha, Kandy District Secretary Indika Udawatta and officials representing all line agencies including the Road Development Authority, Ceylon Electricity Board and the Irrigation Department attended the occasion.
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President calls on the Mahanayake Thera of the Asgiri chapter
President Anura Kumara Dissanayake on Saturday (06) morning visited the Asgiri Maha Viharaya and paid respects to the Mahanayake Thera of the Asgiri Chapter, Most Venerable Warakagoda Sri Gnanarathana Thera, from whom he received blessings.
The President briefed the Mahanayake Thera on the government’s programmes to provide relief to the people affected by the prevailing disaster situation and engaged in a brief discussion with him.
Thereafter, the President called on the Anunayake Thera of the Asgiri Chapter, Most Venerable Narampanawae Ananda Anunayake Thera and also held a brief discussion with him.
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President calls on the Mahanayake Thera of the Malwathu chapter
President Anura Kumara Dissanayake on Saturday (06) morning visited the Malwathu Maha Viharaya and paid respects to the Mahanayake Thera of the Malwathu Chapter, Most Venerable Thibbatuwawe Sri Sumangala Thera.
The President briefed the Mahanayake Thera on the government’s programmes to provide relief to the people affected by the prevailing disaster situation and engaged in a brief discussion.
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