The 100 million dollar credit will be used to upgrade the 'A6' road from Ambepussa to Dambulla and Kantale to Trincomalee in the East in two phases, the World Bank said.
"The project aims to provide funding for maintenance of the existing national road network through the Road Maintenance Trust Fund and complement the funding currently being received from the consolidated fund," the agency said in a statement.
"This project will improve connectivity to the Northern and Eastern Provinces and assist the Government of Sri Lanka to accelerate and reap the benefits from the cessation of the conflict."
The contract for the Kantale to Trincomalee section is expected to awarded in May and completed by August 2012. Phase 02 is expected to start at the end of the year.
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Sri Lanka's finance ministry said 10 million dollars will to go to the road maintenance fund.
The World Bank said the engineering designs on the project have been completed by Sri Lanka's Road Development Authority and suppo