World Bank grants USD 70 million loan for local authority development project

The International Development Association (IDA) of the World Bank has provided a USD 70 million loan to strengthen 134 local authorities in four provinces of the country.

Finance Secretary Dr. R H S Samaratunga and Idah Z Pswarayi – Riddihough, World Bank Country Director for Sri Lanka signed the loan agreement at the Finance Minstry today (May 14).

Issuing a press release, the Ministry of Finance said that the loan had been granted upon a request put forward by the government to this effect.

The loan would be used for the development of these authorities in the Northern, Eastern, North Central and Uva Provinces under the Local Development Support Project (LDSP) which is expected cost USD 100 million.

USD 7 million will be invested by the Sri Lankan government while the balance would be provided as a grant by the European Government, the Finance Ministry said.

The LDSP project would be carried out by the Ministry of Provincial Councils, Local Government & Sports.