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Annual Report 2008 - Ministry of Finance and Planning

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2. Fiscal Developments - <strong>2008</strong><br />

102<br />

Box 2.6<br />

R<strong>and</strong>ora: Road Development Endeavor Contd.<br />

The three bridges at Arugambay, Bentota <strong>and</strong> Tangalle <strong>and</strong><br />

the flyover at Kelaniya were constructed <strong>and</strong> opened to<br />

public in <strong>2008</strong> <strong>and</strong> also the flyover at Nugegoda was opened<br />

in January 2009.<br />

In addition, 1,024 km <strong>of</strong> provincial roads <strong>and</strong> 130 km <strong>of</strong> local<br />

roads have been rehabilitated with the assistance <strong>of</strong> the<br />

Asian Development Bank <strong>and</strong> Government <strong>of</strong> Japan. In <strong>2008</strong>,<br />

around Rs. 2,900 million <strong>of</strong> Provincial Specific Development<br />

Grant was used for local <strong>and</strong> provincial roads development.<br />

During the period <strong>of</strong> 2004 – <strong>2008</strong>, the Government<br />

investment on expressway development has increased from<br />

Rs. 1,600 million to Rs. 15,700 million. The construction <strong>of</strong><br />

a four-lane Southern Expressway was continued <strong>and</strong> 52<br />

percent <strong>of</strong> the total cost has been utilized by the end <strong>2008</strong>.<br />

A further some <strong>of</strong> Rs. 4,568 million has been spent for l<strong>and</strong><br />

acquisition <strong>and</strong> resettlement under this project. Moreover,<br />

l<strong>and</strong> acquisition <strong>and</strong> resettlement work <strong>of</strong> the Colombo –<br />

Katunayake Expressway <strong>and</strong> the Outer Circular Highways<br />

are in progress <strong>and</strong> the construction work <strong>of</strong> these two<br />

projects is to be commenced in 2009.<br />

The Road Maintenance Trust Fund, the focal mechanism for<br />

the road maintenance, was established in 2006. Rs. 3,100<br />

million has been spent for maintenance <strong>of</strong> national roads in<br />

the year <strong>2008</strong>, excluding labour wages.<br />

Investment on widening <strong>and</strong> improvement <strong>of</strong> roads has<br />

increased from Rs. 1,000 million to Rs. 6,000 million from 2004<br />

to <strong>2008</strong> respectively. Under this programme, improvement<br />

on 68 km <strong>of</strong> national roads <strong>and</strong> 26 bridges were completed in<br />

nine provinces. Further, widening <strong>and</strong> improving <strong>of</strong> 547 km<br />

<strong>of</strong> roadway <strong>and</strong> 10 bridges are in progress.<br />

With the community participation under the Maga Neguma<br />

<strong>and</strong> Gama Neguma Programmes, the accessibility <strong>and</strong><br />

durability <strong>of</strong> rural roads have been upgraded isl<strong>and</strong> wide<br />

at a cost <strong>of</strong> around Rs. 12,550 million in <strong>2008</strong>. Since 2005,<br />

around 1,956 km <strong>of</strong> rural roads have been concreted under<br />

Maga Neguma.<br />

“Maga Neguma” Rural Road Development<br />

2005 2006 2007 <strong>2008</strong><br />

Total km completed 731 2,284 1,202 1,640<br />

Of which concreted 21 277 777 881<br />

Total Cost (Rs.Mn) 433 1,800 2,734 3,830<br />

Of which cost <strong>of</strong> 62 832 2,408 2,863<br />

concreted<br />

Source: Department <strong>of</strong> National Budget<br />

Foreign aid component <strong>of</strong> the total investment in 2004 was<br />

Rs. 7,800 million <strong>and</strong> it has grown to Rs. 35,120 million in<br />

<strong>2008</strong> which accounted for 43 percent <strong>of</strong> the total investment.<br />

<strong>Ministry</strong> <strong>of</strong> <strong>Finance</strong> <strong>and</strong> <strong>Planning</strong> Sri Lanka<br />

<strong>Annual</strong> <strong>Report</strong> <strong>2008</strong>

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