Rural road development in Sri Lanka backed by USD 90M ADB loan
October 31, 2025 12:08 pm
The Government of Sri Lanka has successfully concluded discussions with the Asian Development Bank (ADB) to mobilize a loan amounting to USD 90 million under the Second Integrated Road Investment Program (iRoad 2) – Tranche 5.
The objective of this program is to enhance road transport efficiency by improving connectivity between selected rural communities and key socioeconomic centers, while also strengthening the institutional capacity of national road agencies, the Ministry of Finance, Planning and Economic Development said in a statement.
The loan, extended by ADB, will support the upgrading of approximately 500 kilometers of rural access roads to all-weather, climate-resilient standards that are inclusive and friendly to the elderly, women, children, and persons with disabilities.
In addition, the program will facilitate the rehabilitation of about 21 kilometers of national roads, and the maintenance of 100 kilometers of rural access roads, the statement said.
The Ministry of Transport, Highways and Urban Development serves as the Executing Agency, while the Road Development Authority (RDA) functions as the Implementing Agency for the program.
The Loan Agreement was formally signed on 31 October 2025 at the General Treasury, Colombo, between the Government of Sri Lanka and the Asian Development Bank. Dr. Harshana Suriyapperuma, Secretary, Ministry of Finance, Planning and Economic Development, signed on behalf of the Government of Sri Lanka, while Takafumi Kadono, Country Director, ADB Sri Lanka Resident Mission, signed on behalf of the Asian Development Bank.
