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The total investment cost of the project in the island's Eastern and North Central Provinces is 78 million dollars of which eight million will be contributed by the government of Sri Lanka.
The ADB said in a statement the project will rehabilitate 150 kilometres of provincial roads in the Eastern Province and 220 km of provincial roads in the North Central Province.
The proposed rehabilitation includes improvement of road pavements, bridges, drainage and replacement of culverts of the proposed roads.
"The project will contribute to the overall performance of the road sector in the Eastern Province and the North Central Province by improving transport efficiency and expanding access to economic opportunities and public services.
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The project is expected to be completed by 2013.
The Ministry of Local Government and Provincial Councils will be the executing agency of the project.
The implementing agencies are North Central Provincial Road Development Authority and Eastern Pro