OPEC gives USD 18Mn for Sri Lanka’s Kaluganga Development Project

Oct 16, 2017 (LBO) - Sri Lanka's government has signed a loan agreement for an additional US 18 million dollars form OPEC Fund for the Kaluganga Development Project, the Finance Ministry said in a statement.

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The Kaluganga Development Project is currently being implemented by the Ministry of Mahaweli Development and Environment with the financial assistance of Saudi Fund for Development (SFD), Kuwait Fund for Arab Economic Development (KFAED) and OPEC Fund for International Development (OFID).

Kaluganga Reservoir has a capacity of 265 million cubic meters (MCM) of water and will divert 100 MCM annually to Moragahakanda Reservoir. Under this project, it is expected to develop new irrigable lands of nearly 3,000 ha in the Kaluganga Basin.









Unforeseen geological conditions in the foundations and necessary design revisions haveled to price increase and it is noted that the funds available from the above donors is not sufficient to complete the balance work of the project.