Sri Lanka has received an additional loan of $98m from the Asian Development Bank (ADB) to fund the Northern Road Connectivity Project, which aims to improve national and local roads in the northern part of the country.

The island nation signed two loan agreements with ADB for the funding of the project.

The project involves a total investment of $112.8m, with $14.8m funds being contributed by the Sri Lankan Government, and is expected to help achieve a balanced development with the improvement of road connectivity between the Northern Province and the other regions throughout the country.

Of the $98m loan provided by ADB, $30m comes from the Ordinary Capital Resources and the rest from the Asian Development Fund (ADF).

Sri Lanka’s Finance and Planning Ministry said that the additional financing from ADB will be invested in rehabilitating and improving around 200km of 19 roads covered under the project.

"$30m comes from the Ordinary Capital Resources and the rest from the Asian Development Fund."

The works include rehabilitation of close to 80km of national highways, around 120km of local roads in the Northern Province and North Central Province, and the replacement or rehabilitation of certain bridges. These activities are expected to be completed by 2017.

The development project will be implemented by Sri Lanka’s Road Development Authority under the management of the Ministry of Highways and Road Development and the Northern Provincial Council through the Northern Provincial Road Development Department.

In September 2012, ADB approved funds of $98m to rehabilitate 230km of national and provincial roads in the Northern Province and North Central Province, following the earlier restoration of over 300km of roads.