Sri Lanka completes expressway from Colombo to Galle

15 November 2011: Sri Lanka's first 96 km expressway from the capital Colombo to Galle in the south of the island to be opened in November 2011, cost Rs 77 billion (approx Rs 7,700 crore) to build. The road is part of a 126 km expressway running to Matara at the Southern tip of the island which has faced delays and cost escalations.

The first section was financed by Japan and the Asian Development Bank. ADB and JICA had given two loans each. ADB had given one 88.6 million dollar loan for in a via 32-year loan with an 8-year grace with 1.0 percent during the grace period and 1.5 later.

A second loan of 90 million US dollar will is repayable in 20 years with 5 years' grace. The interest rate is Libor is plus 0.6 percent.JICA has given a US dollar 154 equivalent 40-year yen loan with 10 years' grace. It has an interest rate of 2.2 percent. JICA had given a second 163 dollar equivalent 30 year loan with 10 years' grace at 1.4 percent interest rate. There was also a local financing component including 4.7 billion rupees for land acquisition bringing the total cost to 77 billion rupee-equivalent.

Source: Lankabusinessonline