Amidst the backdrop of Sri Lanka’s ongoing financial crisis, India has pledged to alleviate the strain caused by the sharp increase in construction costs by providing up to 50 percent additional funding for development projects in the country. This decision was formalized through diplomatic exchanges between the High Commissioner of India, Santosh Jha, and Secretary of the Ministry of Urban Development and Housing, W.S. Sathyananda, who signed and exchanged official letters on Thursday.
Specifically, the Indian government has committed to providing an extra grant of SLR (Sri Lankan Rupee) 150 million for the construction of Houses and Infrastructure Facilities in Sobitha Thero Village, located in Anuradhapura. This village is among the nine grant projects supported by India in Sri Lanka. The total Indian contribution to this project now amounts to SLR 450 million.
This additional funding will enable the construction of 90 houses within the Sobitha Thero Village, all of which are part of the Indian grant initiative. Currently, the project is in progress, with various stages of construction underway. The execution of the project is a collaborative effort involving the Ven. Maduluwawe Sobhitha Thero Commemoration Foundation, as stated by the High Commission of India in Colombo.
In light of the evolving economic situation in Sri Lanka, characterized by significant changes, the Indian government has taken proactive measures to address the challenges faced by ongoing grant projects. By infusing additional funds into these projects, India aims to ensure their timely completion while mitigating the impact of rising construction costs on the original project scope.
The decision to allocate extra funds reflects India’s commitment to supporting Sri Lanka’s development efforts despite the prevailing economic challenges. Under this initiative, each of the nine ongoing grant projects will receive additional funding of up to 50 percent of the original commitment made by India, as highlighted by the High Commission.
